If you have decided that you want to purchase real estate for sale as your next investment, you may be motivated to look for a good pre-foreclosure deal. But what is a pre-foreclosure and how do you go about buying one. Here is some information for you to consider.
What Is A Pre-Foreclosure
It is as simple as it sound. A pre-foreclosure home is a home that has not reached the stage of being foreclosed on yet. The homeowner may be 30-60 or 90 days late, and no official paperwork may not have been filed by their lender. But every homeowner knows when their mortgage payment is late or have not been received. This is because their lenders begin sending them notices as few as they are a few days late. While one missed payment may not be grounds for concerns for a homeowner who is not ordinarily late, when they are 60 days out, it may be a sign that something is wrong.
If this is a short-term cash fall problem, they may be able to come up with the resources to catch back up, but if it is a long-term and something that they do not think they will be able to resolve, they may be motivated to sale to you at a discounted rate. You may be able to find some of these gems through one of the many pre-foreclosure listing services. If they have reach the point that a Notice of Default has been filed, you can find this information by searching the public records at your local courthouse.
What Are The Advantages Of Purchasing A Pre-Foreclosure?
The advantage of seeking out these gems is that there will be a much smaller field of people who are expressing an interest in the property, which will give you the opportunity to make a better deal. Depending on the owner's situation, they may be cash strapped and willing to offer you a great price in exchange for a quick close that will allow them to salvage other areas of their lives.
But be aware there may be liens or other encumbrances on these properties that may be harder to uncover. Always make sure that you use a reputable real estate agent, such as from The Kotaska Team LLC - RE/MAX ALLIANCE GROUP, to assist you in purchasing the property. They will know what to look for to ensure that you are getting a bargain and not getting a dud.