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.
Many houses that are 'for sale by owner' are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.
Here are some of the reasons many real estate professionals prefer purchasing a pre-foreclosed properties rather then waiting until they reach foreclosure:
- 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 possesion.
- 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.
- The situation allows for more time to evaluate your finances.
- Auctions can be a skill in itself and many people are not comfortable in that environment.
- You have time to have a pre-foreclosed home inspected resulting is less risk.
- All you'll need to buy a pre-foreclosed home is a down payment for as low as a few hundred dollars. At a government auction you would need more cash up front.
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 judgement 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. - 23223
Many houses that are 'for sale by owner' are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.
Here are some of the reasons many real estate professionals prefer purchasing a pre-foreclosed properties rather then waiting until they reach foreclosure:
- 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 possesion.
- 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.
- The situation allows for more time to evaluate your finances.
- Auctions can be a skill in itself and many people are not comfortable in that environment.
- You have time to have a pre-foreclosed home inspected resulting is less risk.
- All you'll need to buy a pre-foreclosed home is a down payment for as low as a few hundred dollars. At a government auction you would need more cash up front.
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 judgement 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. - 23223
About the Author:
See reviews on the best pre-foreclosure sites to see what they have to offer at government auctions review or go direct to pre-foreclosures
posted by X - Men @ 2:41 AM
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