Pre-foreclosures are homes or property that are about to go into foreclosure. This is where some of the best deals can be had, before they are seen by every real estate broker and buyer on the planet. These are generally negotiated directly with the owner, who is eager to avoid the hassles of foreclosure.
Pre-foreclosures properties are increasing in numbers every day. Real estate agents understand that investing in pre-foreclosure homes is definitely one of best ways to secure a profit. The timing couldn’t be better then now to get involved in the real estate game because of the sub-prime crisis and other external difficulties facing home owners today.
Many investors do not want to waste time on a 6 month process to close a deal for cash when there are so many more to be made. In South Florida where I am, less than 20% of all short sales are completed. Banks are holding there own and then selling REO because of the MI insurance and stimulus money giving. Plus when it is REO quicker turn around time. Usually days to get a done completed.
In fact, earlier in year I was trying to grab a 3 condo deal from investor on S/S. Both banks, Chase and BOA were just taking to long and demanding to much on 2nds. In end, the units foreclosed and I picked them up as an REO for about 10% less than I was gonna buy if they closed.
Preforeclosures were hot back when the market was stable. It allowed an investor to generally buy a property with equity and keep the existing loan in place. Catch up with arrearage , and then lease option to new tenant at higher payment while leaving financing in place with previous owner. I did many like this as well as flipping them once under contract. Of course is was more out of pocket expenses but paid off, especially if you did a L/O to recover funds. Many people were looking to sell once 3 months behind which was only running investors around 3-5K in many markets which you got back on the T/B with the L/O.
Who remembers those days??? Ahh equity in the preforeclosed home already…
Equity or no equity…who cares let just make some deals!!! yeah baby, Preforeclosures rock! (Oh except that part about a family losing their house and all)
Pre-Foreclosures is the term used for homes that have been scheduled for a foreclosure sale but have not yet gone to auction or been sold off. Often times this period of time can range from anywhere from a month to a year, depending on the customs and laws of the state or county. Just because they have not yet been sold off does not mean they cannot be purchased, as many home owners look to sell their home before a foreclosure sale takes place.
reitv - lol -
so true…here here…
I recently had to sell my home, it was in preforeclosure. The bank wanted me to find someone to buy it, I sold it to an investor. I know from all my research it was the best decision. I can honestly say thanks for what you do.
I have been studying real estate for two years, recently short sales. I want to help others that are going through the same.
It’s nice to know if I have a question you guys are here, you guys rock!
On my way to do some direct mail pieces, wish me luck.
Dawn
Pre-foreclosure is where the property holder is being warned that they’re about to be foreclosed and need to act on it, however, the lender from here on has the difficulty of claiming back the property and sell it to recover their costs. Usually, some states allow a period of 6 months for the property holder to do something to remedy the problem however, many states have shorter periods.
Tommy Leigh
Desert Shores Investment Group
http://www.desertshoresinvestments.com
What kind of marketing do you do to get the leads.