Reasons of Getting Rich by Buying Pre-foreclsure
I'm sure you know what pre-foreclosure is. But do you know
buying a pre-foreclosure can actually save you up to 40% of the
market value of the pre-foreclosure house? Or you are actually
already thinking to buy a pre-foreclosure? Either way, you will
need info to know more about pre-foreclosure and further decide
your strategy to buy pre-foreclosure.
For your info, pre-foreclosure happens when home owner has
missed at least one payment of the loan. The lender will then
issue a Notice of Default which is a public record asking the
home owner to respond to the un-paid payment/loan. This is the
first legal stage of a home being foreclosed. Home owners have
to respond fast to show their motivation to solve the problem.
Foreclosure home owners will be very motivated to look for home
buyers to buy their house during this very period.
There are always advantages and disadvantages of buying
pre-foreclosure. One has to get the balance point within
the advantages and disadvantages. Buying pre-foreclosure could
be very prosperous in return but in another hand, it might be a
nightmare.
Talking on its advantages, the sale agreements of buying
pre-foreclosure could be flexible and adjustable. For the
agreement only involves 2 parties - buyers (us) and the home
owner. Thus, as long as the pre-foreclosure homeowner agrees,
the agreement is always negotiable. Secondly, buying
pre-foreclosure could save you up to 40% of market value of the
foreclosure home. It means if a foreclosure home's market value
is 250,000USD, you could save up to
100,000USD. Sure your neighbors will envy you for you
owning the same house with them but with the different price
they are paying.
Thirdly, buying pre-foreclosure straight from homeowner as
compared to buying foreclosure home through auction or REO (Real
Estate Owned) allows you to have adequate time to research on
the conditions of the foreclosure home. As stated above, the
agreement involves only you and the homeowner, you can always
have a look on the title and other details of the foreclosure
home as long as the homeowner gives a green light, can't you?
For most of the cases, buying pre-foreclosure needs lesser down
payment and this make the fourth advantage of buying
pre-foreclosure. As long you got your lender, everything should
be going smooth.
Of cause, buying pre-foreclosure have not only these 4
advantages, but they are the major one. Having so many
advantages in buying pre-foreclosure, does it mean buying
pre-foreclosure is easy? I doubt it. Great
bargains always need efforts and good things don't
easily have you unless, you planned your strategy properly in
buying pre-foreclosure.