November 28, 2008

What to Look for When Investing in a Pre-Foreclosed property Listing: Strategies for Getting Pre Foreclosures

Purchasing a pre-foreclosed home is certainly one of the best ways to buy a house for less than its normal market value.  One of the great pros to buying pre foreclosed homes is that you don’t have to compete in foreclosure auction bidding wars that can get out of control. There also isn’t a need to go through Real Estate agents that may not get you the best deal. This often leads to being able to negotiate a better suitable price, that can lead to big Realty resale profits.  Often the homeowners will sell their home at a large discount in order to avoid having a long term poor credit rating that comes with the foreclosure process.  Often, both parties can find a way to jointly help each other. It can be tricky finding pre-foreclosures that have value left, so looking in the right place is important. It’s best to use pre-foreclosure experts that don’t charge hundreds of dollars for pre-foreclosure listings.  Government agencies often do that provide enough data or it is too old.  

The first moment of the Lis Pendens, or  a notice that a legal action is pending,  begins the process. From this time until the home with a mortgage in default goes to auction, there is still time to act and fix the situation between the homeowner in trouble,  and lender. The length of the process can take somewhere from three to four months before the home hits a foreclosure auction, and even longer in certain states.  Make sure not to forget to check out all of the documents and liens. Also, narrow and calculate your choices to find the best property. You may need to make  a few needed repairs before selling, so look at the condition of the home.  Contacting a homeowner who is losing their property can be difficult.  Send letters and make sure that you set a friendly tone telling them that you understand the situation and can help.  Follow up with phone calls, but don’t interrogate the homeowner in default. If you feel comfortable enough visit.  Be friendly and helpful, but back away if the homeowner asks you to leave.  

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