?Pre-Foreclosure Sales: What Are They?

Written By Chouhab on jeudi 4 décembre 2008 | 22:27

By Michael Geoffrey

If you are looking for good property at a good price, you need to do a lot of homework. You might have looked at the tempting offers about buying and selling foreclosure properties, but the ethics about it may make you a little hesitant. One option that's attractive to many is looking into property going into pre-foreclosure. This is the time before the property is turned over to the lender or government and the homeowner is cooperative in the sale.

Pros of Pre-Foreclosure Sales

The pros of pre-foreclosure sales are quite numerous. You will only need to make a small down payment because the homeowner wants their money as soon as they can get it. The contract on the sale can be negotiated by you so that you like the terms. You can save up to 40% on the price of the home and you do not have to feel pressured as to time. That means that you can take your time in inspecting the home for yourself.

Cons of Pre-Foreclosure Sales

Although the homeowner is agreeable to selling the home, they usually are problems of one sort or another and can be tricky to get a hold of when you need to. You also probably aren't the only buyer, so you might have to face the same competition as for a home on the "normal" real estate market. You also might have to deal with other parties that hold liens on the home, as well, such as the original homeowner's lender.

Finding Pre-Foreclosure Sales Lists

In order to find lists of these types of properties you will need to conduct some research of your own. You will have to have a state and county where you would like to purchase the property in mind and then visit that county's courthouse. The public records in the courthouse that are marked "lis pendens" are what you are interested in; it means that the loan for the home has been defaulted on.

After you have found a specific property that you are interested in, you need to make contact with the current homeowner. Keep in mind that the individual you are going to speak with is no doubt quite stressed out, so try to be polite. First, find out if they want to sell their home. If they do, communicate with the lender they owe so that you can find out how much money they still owe on their loan. Purchasing the home will put you in the place of responsibility as far as the mortgage is concerned.

About the Author:

0 commentaires: