Foreclosures Mean Big Profit for Some

With the real estate market cooling as it has over the past few months, after such a large boom in pricing, many families are unable to sell their homes as quickly or for as much as they would have a few months ago. Now for some this is not really a problem, but for those with financial difficulties that need to sell their home right away, this could mean big trouble.

Homeowners facing foreclosure are now the target of another kind of predatory animal – the real estate investor. The investor comes to the homeowner, offers them less than what they would get for their home if they sold it, but offer them cash on the spot. We all know one in the hand…

This works out well for the investor, as they then get to take the time to sell the house for the actual price, making them a tidy sum. However, for the homeowner who is really forced to sell, they end up losing money that would have otherwise helped them out financially. Many say that this is still a win-win situation. The investor obviously makes out – and the homeowner gets the cash without having to ruin their credit by foreclosing. I suppose that just depends on what side of the deal you are on.  ■