Buying a home through foreclosure is without a doubt one of the best ways to buy a home for less than its fair market value. A great benefit of buying houses before foreclosure is that you don’t have to compete in foreclosure auctions that can get out of control. There is also no need to go through real estate agents who may not get you the best deal. This often leads to being able to negotiate a more suitable price, which can lead to huge real estate resale profits. Oftentimes, homeowners will sell their home at a deep discount to avoid the long-term negative credit rating that comes with foreclosure territory. Both parties can often find a way to help each other. It can be difficult to find foreclosures that still have value, so it’s important to look in the right place. It’s best to use pre-foreclosure experts who don’t charge hundreds of dollars for pre-foreclosure listings. Government agencies often provide insufficient data or are too out of date.
The first day of Lis Pendens, or a notice that legal action is pending, starts the process. From now until the home with a defaulted mortgage goes up for auction, there is still time to act and fix the situation between the troubled homeowner and the lender. The length of the process can take three to four months before the house reaches a foreclosure auction, and even longer in certain states. Make sure you don’t forget to check all the documents and links. Also, narrow down and weigh your options to find the best property. You may need to do some necessary repairs before selling, so take a look at the condition of the house. Contacting a homeowner who is losing their property can be difficult. Send letters and be sure to set a friendly tone by telling them you understand the situation and can help. Follow up with phone calls, but don’t question the homeowner by default. If you feel comfortable enough visit. Be friendly and helpful, but back off if the homeowner asks you to leave.
You may also need to hire a cleaning service to clean the property. Everything has to go. Also, keep in mind that there is a high risk of loss. Make sure you know what you’re doing and that you’re ready to embark on an entrepreneurial venture yourself.