Rent collection

Foreclosure is that legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell that property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. At the outset, according to the law, a mortgage results in a mandatory ownership of the property by the holder of the mortgage, referred to as the mortgagee. However, as the law evolved over the years, it now allows mortgagors time to pay off mortgages before their property is taken away from them.

The process of confiscating the mortgagor’s property because of default is what constitutes foreclosure. Foreclosure takes place for various reasons. A sudden illness, divorce, or an unexpected job loss can endanger a family’s financial circumstance and its stability and leave them unable to pay mortgages. Foreclosures which resulted from personal hardship are unlikely to disappear and are difficult to mitigate. Nevertheless, some foreclosures result from poor loan quality and or a poor match between loan and borrower.

Briefly, an industry has surfaced which consists of lenders and brokers that provide credit to people with less than perfect but this is done a way that strips borrowers of equity through excess fees, points, and excessively high interest rates. Some borrowers face outright fraud such as discovering too late that their written interest rate is several percentage points higher than the orally and originally agreed-upon rate. Likewise, some loans are made with little attention to whether a borrower can afford to maintain the monthly payments over time or not.

Some foreclosures result from poor loan quality and or a poor match between loan and borrower. Briefly, an industry has surfaced which consists of lenders and brokers that provide credit to people with less than perfect but this is done a way that strips borrowers of equity through excess fees, points, and excessively high interest rates. Some borrowers face outright fraud such as discovering too late that their written interest rate is several percentage points higher than the orally and originally agreed-upon rate.

Likewise, some loans are made with little attention to whether a borrower can afford to maintain the monthly payments over time or not. Profiting in foreclosures does not mean only buying Illinois real estate below market value; it includes marketing your service to homeowners facing foreclosure. Mortgage agents, real estate professionals and lawyers can all benefit from the leads foreclosure listings provide. The word foreclosure conjures up many images and not all of them are positive. But to grow your Illinois real estate related business you can either learn about them and profit or be left behind.

Everybody knows Donald Trump; his name is synonymous with successful real estate investing. In fact, Donald Trump has leveraged his celebrity status and real estate smarts to become one of the wealthiest and most well known real estate investors in the world. But did you know that Donald Trump's first big deal was on a foreclosure? In Donald Trump's 1988 book, "The Art of the Deal," he told of his very first real estate deal in which he purchased a 1,200 unit apartment complex in foreclosure. Donald and his father were able to turn the complex around by rehabbing the apartments and taking a tough stance on rent collection.

So what relevance does this story have to Illinois real estate investors and Illinois real estate agents? Don't ignore the foreclosure market as potential source of profits. With rising interest rates and signs of inflated property prices on the market, a foreclosure may be the best way to find a deal. In Illinois, according to ilFLS. com, the #1 provider of Illinois foreclosure listings and data, there have been over 7000 new foreclosures in the first quarter of 2006 in the counties of Cook, Dupage, Lake, Kendall, Kane, Kendall, McHenry and Will.

Illinois foreclosures are an overlooked, high reward sector of the Illinois real estate market. " Says George Yanev, investor relations for ilFLS. com. "Real estate agents, mortgage agents, lawyers and homebuyers all use our site to locate and profit from foreclosures, auctions and REOs. "But is investing in foreclosures only limited to those who want to buy and sell properties? Many real estate professionals see the value of foreclosure listings as targeted leads to find potential clients or customers.

"What a lot of people don't realize is that these listings of foreclosures are incredibly effective marketing lists and leads that a real estate agent, mortgage agent or lawyer may utilize. " Says George Yanev, of ilFLS. com. "Homeowners in foreclosure represent someone in need of legal counsel for lawyers, someone who will need the services of a real estate agent's expertise to market their home, and someone who needs to refinance or creative financing from a mortgage professional.

"Clearly, Illinois foreclosures, long an overlooked sector of the Illinois real estate market, demand more attention for anyone wanting to gain an edge in an increasingly competitive and crowded real estate market. Foreclosure can be a tool for restoring monopoly power. In contrast with established knowledge, foreclosure can be directed at reestablishing market power, rather than extending it.