Best Pre-Foreclosure Book or Education Source for an Investor?

Question

Hello all,

My name is Mark. I am 34 years old and from the great state of New Jersey. I am beginning my journey into real estate investing and I have decided to pursue pre-foreclosures. I was wondering if anyone had advice on a good book to start my education and sharpen my skills.

I was considering "The Pre-Foreclosure Property Investor's Kit" by Thomas Lucier. It has great reviews but it was written in 2004. I know much of the strategies are timeless but I was wondering if the book being 11 years old would leave me misinformed in any ways. Not sure what has changed legally in that time.

So if you were starting all over again today, where would you seek information/education about your craft?

Thanks!

William Hochstedler · Answer

@Judy P.

Are you really saying that 100% of the borrowers who have gotten behind on their mortgage and can't recover are willing to risk homelessness or a decade of moving their families into their parents' basement for a couple of years of free rent!?

Most borrowers we talk to had a life event that put them in a situation where they incurred bank fees from which they cannot recover.  Everyone who is not in complete denial is willing to talk about options that might help them get their life back together and provide long-term stability for their families.  They want to put this chapter in their life behind them, not milk it to the point of utter devastation.

Judy Parker · Answer

I can't make any recommendations as far as Sheriff Sales (go to www.bcsd.us and click on "Civil Process") as I have never participated in one.

However, through experience I've learned that when homes are going through the pre-foreclosure/foreclosure process, the owners continue living there, without paying the monthly mortgage, until they are physically thrown out.  Since New Jersey can take up to three years to foreclose, the owners get to live in the house for free for up to three years.  So why would they sell (at a loss) only to have to move into an apartment where they would have to start paying monthly rent?

Allen Brouwer · Answer

Good to know.. so stick with the Sheriff Sales?

Judy Parker · Answer

IMHO forget about pre-foreclosures.  The people living in those "pre-foreclosures" won't sell or move.  They'd rather continue living there, for free, while the foreclosure process drags through the New Jersey courts over the next three years until the Sheriff finally throws them out.  The owner has absolutely NO incentive to sell "pre-foreclosure."