The District Chronicles

Issue date: 7/27/08 Section: Business

As for making money in general by buying foreclosure properties, there are books written about that topic, but my advice to you is this: be careful because it sounds like you are being taught schemes that ultimately defraud the seller out of his or her equity, and this is illegal. There are plenty of foreclosure, pre-foreclosure and bank-owned properties that are currently listed for sale. The best way to buy one of these properties, without running afoul of the law, is to use a reputable real estate agent, reputable loan officer (unless you are paying cash) and a reputable title company. (I suggest that you find one that would refuse to settle the types of transactions you originally proposed.) A real estate agent costs you, the buyer, nothing, as that person is paid from the proceeds of the sale by the seller, whether the seller is an individual or a bank. You will not have to worry about crossing any legal lines, and you will be able to sleep with a clear conscience each night knowing that you did not intentionally or unintentionally defraud anyone out of his or her equity. And that is priceless.

Please interview at least three real estate agents, and ask them how they can help you find an investment property that meets your needs. Best of luck,

Jessica White, also known as "Ms. Mortgage Maven," is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs, including FHA loans and loans in "declining markets". She can be reached at 202-607-4449, Jessica@msmortgagemaven. com or jessicawhite@tenacitygroup. com. You can also apply online at www.msmortgagemaven.com.

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