real owner of the property
total amount owed on the house
listing of liens (senior and junior liens, tax liens)
some counties issue and sell tax lien certificates with generous interest rates.

You must be very careful about such liens as you will be responsible for such liens when you buy the preforeclosure home from the owner.

Your negotiation power is strong in preforeclosures

You have more time to negotiate.
Each passing day and week will be in your favor, strengthening your hand more
Your power of negotiation will be further enhanced if you have one or more other preforeclosure or foreclosure deals waiting for you.

How can you negotiate liens?

When you buy preforeclosure home, you buy the first mortgage, the senior lien. Second mortgage holders know that their junior liens will be wiped off if lender forecloses on the property. First, you should never offer full price to junior lien holders.

Interrupt your negotiation if you do not get sufficient discount. Time is working in your favor. Resistance of second mortgage holders will decrease as the foreclosure auction date gets closer. They will get nothing if foreclosure auction is carried out or they will get something if they agree to work with you in giving a good discount to you.

Review negotiate foreclosure, negotiation tips, and foreclosure negotiation tactics for more negotiation techniques.

Make your function clear in preforeclosure negotiations and purchases

During your negotiations for pre-foreclosures, "subject-to" deals, lay safe to avoid any future legal problem: let homeowner, lender, real estate agents, and any other interested party know that you are not an attorney, accountant, or real estate agent. Alternatively, simple tell them clearly that you are a real estate investor. Simple is that!