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 several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:
- A pre-foreclosed home could actually be cheaper then foreclosure because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.
- Because you are working with the owner you’ll be able to ask questions about the property you wouldn’t be able to otherwise.
- There will probably be less competition for a pre-foreclosed home than a foreclosed home at an auction. You won?t have to worry about placing the highest bid.
- You won?t have to worry about becoming frustrated from losing a bid.
- You will be given more time to access and evaluate your finances before buying a pre-foreclosed home.
- Less risk of potential problems because you can get a good look at the house ahead of time, and in some cases have it professionally inspected.
- You don’t need all the cash up front like you would at an auction. You can pay a down payment for as low as a few hundred dollars!
Always check to make sure that the pre-foreclosed home you?re interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you?ll know of any problems it may have. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive! You can even resell the pre-foreclosed home for more money than you purchased it for.
|
|