Investing in pre-foreclosure homes in an excellent way to enter the real estate market and begin building long-term wealth. But where do you start? And what exactly is a pre-foreclosure anyways? Well read on and you'll be building your real estate investment empire in no time.
Firstly, it is important to understand the entire foreclosure process. A house goes in to foreclosure when the current home owner does not, or cannot, make the required mortgage payments they possess and, as a result, the bank evicts to home owner, takes control of the property, and then sells the house to recoup the remainder of debt owed. A terrible situation to be in for the home owner, but an excellent opportunity for you to get an amazing deal on a great house!
The pre-foreclosure process takes place during the short period of time between when the home owner defaults on their loan and when the bank takes possession of the house. This is the ideal time for you, the investor, to get involved and cash in! Pre-foreclosure is usually easy to spot and a very frequent occurrence in today's market.
If you do your research and check online and offline pre-foreclosure listings daily, you should be able to spot pre-foreclosures quite often. When you find a pre-foreclosure that strikes your interest, your first order of business should be to convince the present homeowner to sell their property to you. This is a win-win situation for you as well as the homeowner. You get the chance to make an offer on their house before it goes up to public auction, saving you the hassle of competing with other bidders. You will also have much more time to work out your finances and address the local market.
Another benefit of buying a home in the pre-foreclosure stage, as opposed to the full foreclosure stage, is the convenience of not having to deal directly with the associated bank. The bank acquires various fees for every day they are holding the home, these fees may end up being passed along to you through a higher price for the property.
Whether you are a first time home buyer looking for a condo, a growing family looking for a single-family house to call your own, or a real-estate professional looking to quickly expand your portfolio of properties, pre-foreclosure can be the key to achieving your real estate goals.
Now that you have a better understanding of foreclosure and the pre-foreclosure process, why not continue to learn more at http://foreclosuresource.googlepages.com . Foreclosure Source is an excellent real estate resource, with an outstanding collection of information on all types of foreclosure investing.