Foreclosures are NOT very good ideas of making money.

I don’t know about you, but I don’t think mortgage and foreclosures are very good ideas of making money.

See, one of the ways real estate mo-gus (gurus, millionaires) earn money is to take over mortgages, in other words, buy over foreclosures from the bank at a big heaping discount and sell them off at the market price.

How did this happen?

Well. Prior to that, some people owed some money to the bank. They probably took up a debt, and put their house under mortgage. Or buy a house they cannot finance and took up a 20-year loan. (Meaning, they have to take a certain amount off their paycheck to pay the bank every month) Somewhere along that line, they couldn’t pay up anymore. So the bank says, “I’m taking away your house because you owe me such and such money.”

Now the bank is left with all these houses. The banks doesn’t want houses. The banks want their cash back – the money they loaned out. So they will sell to whoever wants it so that they can recoup some of their cash back. Like my lecturer says, Roy Pipitone, “The banks doesn’t want to be real estate agents, so they sell the houses.”

On the other hand, we have my brother here, Carleton Foxx, helping people get their houses back. How exactly did he do that, I am not sure. (I am asking.)

To be continued…

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