No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is happening now. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.

This new opportunity - known as 'Bulk REO Investing' - is so huge it's captured attention from wealthy investors and private investment funds alike.

Foreclosures are at the heart of the Bulk REO business, so let's consider the foreclosure process.

Understanding the notion of Bulk REO's requires understanding of the foreclosure process.

Mortgage lenders faced with a non-paying home owner send a large volume of threats, warnings and documentation to the borrower who is late. The official foreclosure proceedings begin subsequently, as directed by the lender. 'Pre foreclosure' is the name given to the time between implementation of the foreclosure proceedings and the public auction.

The defaulted property is ultimately auctioned, thus completing the foreclosure process. If the property is not purchased at auction, ownership reverts to the original lender. The lender then categorizes the property as 'Real Estate Owned' - or 'REO' for short.

Lenders have no interest in owning property, and thus usually opt to list their REO properties with a local real estate broker in hopes of a retail sale. However, REO properties are now frequently sold for far less than their 'book value'. Lenders are willing to do so in exchange for the buyer's agreement to purchase a 'package' of REO's rather than a single property.

These REO packages represent the potential to acquire huge amounts of equity for savvy real estate investors. REO packages are easiest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. One excellent source of funding for Bulk REO Investment transactions can be found here: Bulk REO Investment Training.

With more foreclosures now than ever before, America's weak real estate market seems to set new dismal records each month. But smart real estate investors are turning these 'lemons' into 'lemonade' in an incredibly profitable new way.

This new opportunity - known as 'Bulk REO Investing' - is so huge it's captured attention from wealthy investors and private investment funds alike.

The basis of the Bulk REO business is foreclosures, so let's analyze the foreclosure process now.

To understand Bulk REO investing is to understand the foreclosure process.

As a borrower becomes increasingly behind in his mortgage, the lender regularly calls and writes the borrower with default warnings and threats. The formal process of foreclosure begins at the lender's discretion. The 'pre-foreclosure' time starts with filing of foreclosure paperwork and concludes at public auction.

Foreclosure is completed when the property is put up for auction. If there are no buyers at the foreclosure auction, the lender regains title to the property. The lender then categorizes the property as 'Real Estate Owned' - or 'REO' for short.

Typically, lenders list their REO properties with local real estate agents in hopes of selling the property to a retail buyer who will pay full price. However, REO properties are now frequently sold for far less than their 'book value'. However, the purchase of a 'package' (or group) or REO properties is the trade-off for receiving such great prices.

The REO investment packages available today have provided a way to profitably capitalize on the U.S. recession. REO packages are easiest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. One excellent source of funding for Bulk REO Investment transactions can be found here: Bulk REO Investment Training.

No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is happening now. Yet as always, this challenge has given rise to a huge new opportunity for alert real estate investors.

The new opportunity is known as 'Bulk REO Investing' or 'REO Package Investing' and it's a huge opportunity.

Take a just a minute to consider the basics of this highly profitable business.

You can't understand Bulk REO Investments without understanding the process of foreclosure.

Mortgage lenders faced with a non-paying home owner send a large volume of threats, warnings and documentation to the borrower who is late. After a certain period, the lender will then formally begin foreclosure proceedings. The 'pre-foreclosure' time starts with filing of foreclosure paperwork and concludes at public auction.

The defaulted property is ultimately auctioned, thus completing the foreclosure process. If there are no buyers at the foreclosure auction, the lender regains title to the property. The lender then categorizes the property as 'Real Estate Owned' - or 'REO' for short.

Local real estate agents are usually used to resale REO properties at retail price to the general public. However, REO properties are now frequently sold for far less than their 'book value'. This happens because the buyer of the REO is required to purchase multiple REO's in a single transaction.

Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages. Bulk REO Investors are most successful when they have a well-established source of funding for their REO packages. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. One excellent source of funding for Bulk REO Investment transactions can be found here: Bulk REO Investment Training.