Real estate foreclosures include many problems from several angles to be sure. However, as is typically the case, where there are obstacles there also are opportunities, and with respect to real estate foreclosures, those opportunities are plentiful indeed! But, are the potential foreclosure profits to be earned from such opportunities boons or busts? Well, the answer to that question is clearly, "Both!"

There are many ways that one can seek to profit from home foreclosures, but they really stem from the three main time periods associated with any particular foreclosure:

1. the time period before foreclosure,

2. the time period from beginning to end of the actual foreclosure process, and

3. the time period directly following the foreclosure.

Each period contains good possibilities for earning great financial returns, and catastrophic disasters.

During the preforeclosure period, qualified property owners should have some value remaining in their properties to allow a short sale. On the up side of these opportunities are two complimentary elements. First, the investor who can creatively and patiently work his or her way through the procedure during this period can gain big rewards. Second, having acquired the house at a very favorable price and sold it successfully for a quick profit, the property seller can be given some extra cash from the transaction making it a win-win situation.

On the negative side, transactions during this period can take longer than normal property purchases because a bank’s approval is necessary before the sale process can even begin. Moreover, working with homeowners who are under all the financial stress and emotional strain associated with such circumstances is very difficult and beyond the capacities of many investors.

During the foreclosure process itself, investors can still earn a very significant return on their investment and can do so without the unsettling emotional penalties borne while interacting with disturbed sellers.

However, while the home will in all likelihood have been taken back by the mortgage holder and be up for auction during this period, new difficulties must be subdued to deal effectively and reasonably with the bidding craze common with auctions to ensure that one maintains self control and doesn’t pay too much.

Last, those homes that don’t sell at auctions return to the bank and may then be sold as REO homes in MLS listings and elsewhere. Here again, great bargains can be discovered and financial rewards earned, particularly among lenders with an surplus of foreclosed homes on their books. Anytime firms have under achieving assets on their books, banks included, they’re going to be significantly interested in getting out from under them.

The major downside of investing profitably in foreclosures during this period is funding. Banks are disinclined to lend to prospective investors of REO homes. And, with many lenders who are full of, if not overcome by losses of this kind, getting more than a 20% discount is very improbable.

So, is investing successfully in house foreclosures more bust than boon, more illusion than fact? Absolutely not! But it is requisite that one learn what to do, when and where to do it, with whom to do it and not to do it, as well as how to do it. And knowing why to do something is helpful, too! My advise? Learn all this and more from some trusted source such as "Foreclosure Profit Finder" available from http://www.JuJamVideoReview.com/foreclosureprofitfinder.html! Check it out for yourself!