Pre-Foreclosure Versus Foreclosures – Pros Of The ‘Pre’
It’s unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.
A lot of times the banks don’t want to deal with having to foreclose a home, so they will allow the owners to sell it during the pre-foreclosure period. You can get a great bargain in buying a pre-foreclosed home.
Here are many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an auction:
- Pre-foreclosed homes are often sold for less than foreclosed homes. To avoid credit problems a homeowner is motivated to sell their home before the bank takes possession.
- Since you won’t be at an auction, you will be given more time to talk to the home owner about any questions you may have concerning the house.
- There is usually less competition for a pre-foreclosed home than a auctioned foreclosed home. You won’t have to worry about placing the highest bid.
- More time to evaluate financial scenario then at an auctioned property.
- Many people can become more emotionally driven during bidding and pay more then they had intended to.
- You have time to have a pre-foreclosed home inspected resulting is less risk.
- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.
Make sure you bring along an inspector when you check out a pre-foreclosed home. You should also check to make sure there are no past judgment liens or unpaid taxes on the property. The risks in buying a pre-foreclosed home are not that much more then buying a home the traditional way through a real estate company.
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Tags: bank foreclosures, bank mortgages, foreclosures, government auctions, investments, mortgage, mortgages, pre-foreclosures, property auctions, real estate short sales, Reality, seized property, Short Sales
