DOT Amount/Amount Owed
Hi everyone,
I'm REALLY green to REI, so please bear with me. I've read several books on investing in foreclosures, and know enough of the terminology involved. I know that a deed of trust is simply a another term for a mortgage (used in certain states), correct? So I go to the courthouse and start researching the "Trustee election and demand list", (fancy term for the pre-foreclosure process?), and notice that most DOT amounts are listed fairly close to the "Amount owed". For instance, one property has a "DOT Amount" of 114,000, and the "Amount Owed" is 114,000. To me this means that there's no equity in this particular property. Another property has a DOT Amount of 20k, but the Amount Owed is 34k. Is this particular individual upside down?
On a side note, like I mentioned earlier, I'm really new to REI (don't even have one one prop under my belt). I do a lot of reading about REI, and I have been accused of "over analyzing", which I may be doing here also. I need to get over this "over analyzing" phase and just take the plunge. Any advice/constructive criticism is greatly appreciated.
Junoti
That is right - most Foreclosures are
on properties where the amount owed is close
the the market value of the house. But, there
are also plenty of foreclosures where there IS
equity - those are the ones you want - look
through 100 foreclosure listings, maybe find 1-2
that have equity (it does require work, like anything else, but you can make good money).
On the ones where the amt owed is close
to the value, try to get the bak to short sell it
to you (banks accepts less than what is owed).