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 real estate
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.