Pre-Foreclosure Sales

Pre-foreclosure sales involve dealing directly with the homeowners. The real estate property is bought at the market value in such a sale. The home owner can get paid some of the amount paid for the home if it has equity. Nowadays with mortgage rates touching the sky, foreclosure rates are not much behind in the race. Therefore making those mortgage payments for some people is very difficult.

Mortgagers and real estate investors can however take advantage of this situation. At ForeclosureRepos.com, the mortgager can save his line of credit by handing over the mortgage to the investors. The pre-foreclosure sale is made before the foreclosure process begins. It is a period in which the mortgagers has defaulted the payments. Mortgagers are given some time to make their payments and it is during this period that investors take advantage of the situation to make some sort of a pre-foreclosure deal with the homeowner.

A pre-foreclosure sale is usually beneficial for all parties. This is because the homeowner can hand over the mortgage payments to the investor and be relieved, the lender receives the balance of the mortgage and the investor has a huge profit margin anyway. The goal of a pre-foreclosure sale is to create a win-win situation for all parties involved.

There are several things to keep in mind for a successful sale and purchase. Try to locate the loans in default. Evaluate and analyze the selections and narrow them down to continue ahead. Thoroughly inspect the property you are about to purchase. Understand the needs of the property owner and also try to find out the market value of the property, its repair costs, potential sales and profits. Try to negotiate with the owner and lender and then close the property, repair it and resell it as fast as you can. By following these tips from ForeclosureRepos.com you are sure to have a successful sale!

Keep in mind that pre-foreclosure sales have their own pros and cons. It is a wonderful opportunity to invest if it is done correctly. You can purchase a property at a discount of 20-35% of the market value. Sometimes, if done properly, a low cash down payment is also possible. Besides, you have your own sweet time to research and inspect properties and sales that meet your needs and are offer flexible services depending on what you are looking for.

In a pre-foreclosure sale, it can be difficult to get in touch with the property owner at times. There is a lot of competition in the field, so you must be wary of it. The research for court houses can become unwieldy and there are times when you might have to negotiate with the lien holders. Even with this cons, a pre-foreclosure sale is a preferable choice because it has the potential of keeping both sides happy.

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