Why Pre-foreclosures are Preferred with Real Estate Pros
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 many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an auction:
- Pre-foreclosed houses are often cheaper considering as it's being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.
- You will have the opportunity to ask the home owner questions concerning the home.
- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.
- More time to evaluate financial scenario then at an auctioned property.
- Auctions can be either overwhelming or lead to egotistical or emotional decisions.
- Less risk of potential problems because you can get a good look at the house ahead of time, and have it professionally inspected.
- 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.
As with any house purchase make sure you check for any judgements, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing. - 23167
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 many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an auction:
- Pre-foreclosed houses are often cheaper considering as it's being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.
- You will have the opportunity to ask the home owner questions concerning the home.
- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.
- More time to evaluate financial scenario then at an auctioned property.
- Auctions can be either overwhelming or lead to egotistical or emotional decisions.
- Less risk of potential problems because you can get a good look at the house ahead of time, and have it professionally inspected.
- 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.
As with any house purchase make sure you check for any judgements, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing. - 23167
About the Author:
Read descriptions 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 @ 3:07 AM
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