TOP 5 REASONS A PRE-FORECLOSURE may be the best deal in Real Estate or not?

By
Real Estate Agent with Godzyk Real Estate Services


1. WHAT IS A PRE-FORECLOSURE?

A Pre-Foreclsoure is just that, a house entering into the foreclsoure process. It could be any home where the home owner is at least 30 days late. The pre-foreclsoure process includes every aspect of the foreclosure process right up to the foreclosure auction.

2. WHY CAN'T I JUST GO AND BUY A PRE-FORECLSOURE BEFORE IT GETS FORECLOSED?

One of the biggest myths in foreclosures is "getting a deal on a preforeclosure". Let me tell you why, most houses are not even for sale, most home owners owe more than the house is worth in todays market and unfortanately if in a preforeclsoure situation, IN MOST CASES there is not enough time for them to complete a short sale.

3. CAN I GET A SELLER TO WORK WITH ME SO THEY CAN AVOID A FORECLSOURE?

One of the most important things when buying a home is to have a willing seller, with most preforeclsoures, the homeowners are being forced from their homes, they have tried everything to save their home to no avail or have all but given up. Knocking on the door of one of these homes with a home owner in this situation is not always pleasant, They are not going to invest their time, what resources they have left or their emotions for someone else to get a deal on their home.

4. WHERE IS THE BEST DEAL THEN?

The best deals often lay with homes that are already foreclosed, the bank has cleared the title, the occupant will have moved out and the property cleaned. The bank will be selling it at or below market value.

If you are looking for a deal, the deals are when the listing agent receives the listing, however the house probabily hasnt been cleaned yet, has not been appraised and is therefore not in mls yet. By working with these listing agents you can get in the house right away.Some banks will take offers during this period and you can buy the house as is, do the work, get a clear title and save a bundle. Some however will not take offers until they set a price, but that is ok, you can get in the house ahead, inspect the property and have your offer ready, When the bank sets a price there is usually a 1-2 day lag before it hits mls, you can put your offer in right away. In most cases your offer can be approved about the time it hits mls.

5. WHAT IS YOUR CONCLUSION?

Working pre-foreclosures is a long and stressful task, you need to have a strong will where emotion does not affect you and upset homeowners words will not affect you. If this isnt you, then preforeclosures may not be for you either.

The best deals are after the foreclosure auction, the deed is cleared, the occupant evicted and the property cleaned of debris.

PLEASE SEE MY BLOG FOR ADVICE AND TIPS FOR BUYING A BANK OWNED HOME

http://actvra.in/bNZ


PLEASE SEE MY BLOG FOR ADVICE AND TIPS FOR BUYING A SHORT SALE

http://actvra.in/bP2

PLEASE POST YOUR COMMENTS, STORIES OR INTERACTIONS WITH PRE FORECLOSED HOMES AND OR THEIR OWNERS!!!

Updated June 3, 2011

All rights reserved. Copyright 2010-2011

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  1. Dan Edward Phillips 06/06/2011 08:09 PM
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Topic:
Real Estate Market Trends
Location:
New Hampshire Hillsborough County Manchester
Groups:
Active Rain Newbies
New England Professionals
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Rainmaker
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Dan Edward Phillips
Humboldt and Del Norte Counties, CA
Dan Edward Phillips, Humboldt and Del Norte Counties, CA

Good Morning Scott, excellent input for buyers in the current market.

June 03, 2011 09:10 AM
Rainmaker
975,993
Scott Godzyk
One of Manchester NH's Leading Agents
Godzyk Real Estate Services

Thanks for the comment Dan, have a great day

June 03, 2011 09:15 AM
Ambassador
722,412
Debbie Laity
Your Real Estate Resource for Delta County, CO
Cedaredge Land Company

I do see a lot of distressed homeowners that are willing to work with a potential buyer. It's getting the bank to play along with a short sale that can be the problem. In some cases, I think the short sale can be a better deal for the buyer. That way there is usually a seller's property disclosure, and the house doesn't sit empty for a long period of time while the bank goes through it's paperwork to foreclose, and then get the house listed. I've seen some houses in our area that sit vacant for a year. This is where we usually get the REO properties with vandalism damage, and busted pipes if the house sits through the winter. This can be a real issue here in Colorado. Meanwhile any repair issues that may not have been taken care of...just get worse. So who really wins in situations like this? No one.

June 03, 2011 09:22 AM
Rainmaker
975,993
Scott Godzyk
One of Manchester NH's Leading Agents
Godzyk Real Estate Services

Debbie you are correct... no one wins... the current home owner should seek out assistance early to avoid foreclsoure, if they have any ability to make monthly payments, most banks will work with them to stay in their house. If they have no abaility to make any payments, avoiding foreclosure and selling their home through a short sale is best. Unfortanately too many people give uop and abandon their homes.

June 03, 2011 09:29 AM
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Additional Information

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Sales, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.