|
|
|
The Seven Deadly Tax Sins: Commonly Missed Deductions
It's that time again, the April 15 tax deadline is looming large. If youre like most people, you havent gathered all of your tax records, let alone filled your return. Before you dig in and get started, take this opportunity to first review a...
|
Investing - How To Profit Using Formulas
A classic Wall Street yarn, concerning a young man who was in
the early stages of learning to be a professional speculator
goes something like this. The young man had a problem, so he
went to an elderly gentleman noted for his shrewd...
InvestingInWireless.com Reports: “Communications in Homeland Defense: Wireless is the Way to Go."
For Immediate Release December 9th, 2004 InvestingInWireless.com Reports: “Communications in Homeland Defense: Wireless is the Way to Go." POINT ROBERTS, WA. December 9th, 2004 - www.InvestingInWireless.com, an investor news portal for...
|
|
"Property Investing - A Numbers Game Or As Easy As 123?"
REPRINT GUIDELINES
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= You
are free to publish the following article in it's entirety in
your eZine or on your website. Our only condition is that you
MUST keep the information about the...
|
|
|
|
|
The Durrett Rule Bites Foreclosure Investors
Folks learn that you know something about real estate investing and they eagerly ask you about buying foreclosure property.
The general assumption is that they can buy a beautiful home at a deep discount at a foreclosure auction.
Their smiles fade when you explain that they will have to pay cash on the spot and they must be able to research title to be sure they aren't buying trouble.
But wait... there's more... There is also a little something called the "Durrett Rule".
Oh boy... can that be a like a knife in the back. For example: You spend the time and effort scouting out a nice home scheduled for foreclosure auction. You search title and scare up the cash to have in your pocket when you go to the sale.
Hurray... You have the winning bid at the foreclosure sale and buy the home at about a 40% discount to market value. After doing your happy dance you spend the next few weeks doing needed fix up. Then you find a renter and settle back to collect rents for the next few years.
But wait! Who's that knocking on the door.
Why it's a nice man who says he is taking the home away from you. Who is this pretentious devil? He is the dreaded... BANKRUPTCY TRUSTEE!
Shortly after the original homeowner lost his house he filed for
bankruptcy. The wheels of the bankruptcy court grind slowly and the trustee just recently learned that the house had been sold at the auction.
And... The foreclosed upon owner had a nice hunk of equity in the home when he lost it. Uh oh.. get ready for this. It is trustee's job to capture that equity so it can be distributed among the bankrupt home owner's creditors.
Can he do that?
Yes! Under the power granted by The Durrett Rule the trustee can show you the door and claim the home in the name of the bankruptcy court.
You, see the bankruptcy court has more power than Edison Electric. It can do about anything it wants when it comes to assets and creditors.
Oh sure, months later, after a battle in the bankruptcy court, you should be able to recover the money you paid for the home. Of course... no interest is paid on the money for the time it is tied up in court and you will not be able to recover the fix-up costs or attorney fees needed to get your money back.
Buying at foreclosure sales is not for sissies! Stick to an easy money tactic... buy in the preforeclosure period.
About The Author
Mark Walters is an investor and author. You can find his
published material at http://www.CashFlowInstitute.com
http://cfiblog.blogspot.com/
|
|
|
|
|
|
