Buying Homes In Pre Foreclosure

by Jilly Willson on December 8, 2011

Land in pre foreclosure provide a good opportunity for real estate investors Property owners in a pre foreclosure situation are highly motivated to sell the property quickly When an owner of a potential investment property is in pre foreclosure, they are extremely motivated to sell, are often willing to take an extremely low offer just to be rid of the property. This often results in a significant opportunity for the buyer. The only challenge is getting the bank to accept the offer to purchase instead of forcing the home through the pre foreclosure process.

As the bank stands to lose money on the sale, they will only do the deal if their losses are less than what it would cost to go through foreclosure.Essentially they are in a lose lose situation and will evaluate sales offers based upon what will minimize their losses. If a property owner has stopped paying on a mortgage and the bank has put the home in pre foreclosure, then the burden is on the real estate investor to demonstrate that their purchase offer provides the most effective means for the bank to minimize their loss on the deal.

Due to this this fact, investors that purchase homes in pre foreclosure often put together full short sale packages to provide to the bank. They meet with loss mitigation offers and learn what is needed by the bank to complete the transaction.

Many investors who have successfully purchased pre foreclosure homes have worked with mentors to develop systems that streamline the process and make it easy. While this is not necessary for the periodic investor, it does have a visible benefit for the novice real estate investors.

Aside from market factors, the pre foreclosure market is a great way to get a good bargain on an investment property Just know that there are a number of little details that will determine your overall level of success.

There are many other resources available to learn more about investing in short sales. BestShorSales.com is a learning service that I have found useful in the past

To learn more about how to profit from pre foreclosure visit our Real Estate Investment Website today. In addition to investment tools, real estate investors receive our free real estate software, a ninety-nine dollar value.

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