The savings which can be made when purchasing property from a pre foreclosure list can be astronomical. With such large amounts of money involved in the transaction, even small saving can equate to thousands of dollars back in the real world.
Purchasing a property off of a pre-foreclosure list gives you the chance to own a home at the lowest price it will be available for – before it is repossessed by the bank and prepared for retail. pre foreclosure listings or a pre foreclosure auction gives buyers the chance to hunt for bargains, or invest in a much larger house than would be affordable at the retail end of the real estate market.
Here are three things you need to know about a list
What is a Pre Foreclosure List?
Getting your hands on a pre foreclosure bargain is often about being first to hear about a golden opportunity. A pre foreclosure list gives you the chance to get ahead of the others, by presenting you with a list of homes whose owners have fallen behind on payments, and whose lenders have issued a notice of trustee sale.
If the owner’s payments has fallen more than 90 days in arrears, the lender may have issued a Notice of Default, outlining that foreclosure is imminent. Pre foreclosure listings are homes which are available before the bank repossess the property, which is why they represent the best value in real estate.
Pre foreclosure listings are homes which are in the process of foreclosure, but are still the legal property of the owner. The home will be a full foreclosure when it legally become the property of the lender.
The Value of a Pre Foreclosure List
Pre-foreclosure listings or a pre foreclosure auction represent the best opportunities for real estate investors and savvy buyers. The process does require a certain amount of due diligence, meaning you have to have all your “ducks in a row”, but the bureaucratic process isn’t impossible, and a pre foreclosure list is a useful tool for anyone who is willing to study the buying process further.
A home will typically be available as a pre foreclosure for three months before the lender completes the bureaucratic and legal processes of claiming ownership. It is essentially an opportunity for the owner to fix the financial problem, and minimize the damage to their credit score.
Do’s and Dont’s of buying off of a Pre Foreclosure List
Pre foreclosure listings are the first stages of acceptance for an owner who is losing his property and, most likely, is in a difficult financial situation. Buying off of a pre foreclosure list requires tact, subtlety, and a soft approach. It requires confidence and control of the purchase process as people are often not in the position to take charge of the situation. To avoid this, a buyer needs to have prepared their due diligence, and patiently allow the wheels of purchase to turn in a stable and professional manner. The necessity for stable funds and the ability to finalize a purchase is paramount for a pre foreclosure auction.