What is “pre-foreclosure” property?
In the literature, pre-foreclosure, preforeclosure, and pre foreclosure are used interchangeably.
Types of pre-foreclosure properties available
Single family homes, condos, town homes, multi-family units, rental and income properties, office buildings, commercial properties, industrial and agricultural real estate to name few.
How does the process work?
Contacting banks and mortgage lenders at pre-foreclosure phase
You can find the best buys by contacting homeowners before the lender takes over. You can make arrangements with homeowners and lenders to make both parties happy while you get a good deal.
Start with what the homeowner needs
Is it a fair business? You are not taking advantage of anybody’s misfortune. You are creating a “win-win situation”: You save homeowners from foreclosure or bankruptcy and help lenders to recover their money. You also deserve your share in return for your efforts and investment. In other words:
- Homeowner gets out of debt (and trouble).
- Bank/mortgage lender avoids bad loan.
- You acquire a property, and make it more valuable after fixing it up and improvement. And, profit from what you do at pre-foreclosure stage.
To be successful, you need to convince the bank. Then, you need to negotiate a good deal with the owner.
Remember: In pre-foreclosure, you need written permission from the borrower to deal with the lender. The lender is prohibited by law to disclose financial information about its borrower if you don’t.
More on pre-foreclosure opportunities…
- Your negotiation power is strong in pre-foreclosures!
- Time factor in buying pre-foreclosures
- Non-monetary deals to make in pre-foreclosures
- Importance of hardship letter in pre-foreclosure
- How to negotiate the best possible deal to buy pre-foreclosure?