Types and Stages of Foreclosure Homes

1. Pre-Foreclosure Properties

What is pre-foreclosure?

Pre-foreclosure gives public notice of the foreclosure process, and provides the foreclosure buyer with their first profit opportunity. It also gives the defaulting homeowner enough time to sell the home or amend the default and avoid loss of the home by foreclosure.

How can I find pre-foreclosure homes?

You can locate pre-foreclosure homes a couple of ways, such as listing subscriptions, newspapers and/or contacting foreclosure attorneys. When you subscribe to ForeclosureRepos.com, take advantage of our online listings, which include thousands of available pre-foreclosure homes. Make sure to also look in local newspapers, which publish "Notices of Public Sales," or trustee sales. We recommend you to contact foreclosure attorneys directly so that you may find out which foreclosure homes are available.

How can I buy pre-foreclosure homes?

A written contract must be submitted directly to the owners in order to purchase a pre-foreclosure home. The property is still owned by homeowner during the first stage of the foreclosure process. You should first contact the homeowner by either visiting them, calling or by writing a letter. There are many benefits by getting in contact with the homeowner. One of these benefits is that can find out everything you need to know about the physical and financial aspects of the property.

In order to determine whether or not the property is worth purchasing, all information of the home is needed. Assessing the cash flow the property can provide (this applies only if you plan to use the property for an investment purpose), a good idea if the property is worth purchasing. This applies also if you wish to own the property as a home. An attorney must be informed to stop the foreclosure process once you decide on the property's purpose and actually purchase the home.

How much money is needed to purchase a pre-foreclosure home?

When you first begin this process, a lot amount of money is not necessary. A deposit of $1,000, possibly less, is usually the amount needed. Later on, you will be required to get a hold of the necessary funding in order to pay off the property's debt.

What should I be aware of when buying pre-foreclosure homes?

Issues to consider when purchasing pre-foreclosure homes are the debts a pre-foreclosure property has, and may still be on the property until it is sold. You just might be obligated to pay all debts of the property before purchasing it. Unexpected surprises during post-purchase can be avoided by finding out all the information about foreclosure homes before deciding to purchase them.

Another issue to keep in mind is finding out who holds the title to the property. Whether it be only one holder, or many holders, all holders must agree and sign the contract of sale.

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