Guide to Buying Preforeclosure Properties
If you are interested in buying a house from a distressed owner in preforeclosure, the results would be beneficial to both distressed homeowner and the foreclosure investor. Buying a preforclosure property will make you acquire it at a very low price and it also benefits the distressed owner since he will not lose everything and will receive money from the payment of his property. You can also gain profit from this preforclosure home that you will buy if you assign the contract to another investor, or if you have it renovated and sole, or use it as a rental property.
So how do we find preforeclosure properties to invest in. Real estate leads can be found in three sources.
The first thing to do is to check out your county clerk or recorder’s office. There are public records that show transactions between homeowner and their lenders. One a homeowner misses one payment, the lender will give him an official notice called the NOD or lis pendens. Depending on where you live, you can actually buy a list of these notices for a certain amount. The preforclosure property owner has no contact details in these files so you have to do your own research to find them. And since there are a lot of documents to check out, you should be ready to spend some amount of time to check them out. Foreclosure leads can be found here but you will have to spend lots of time doing research.
If you go to a mortgage broker, he will be able to provide you with a list of preforeclosure properties. You can ask the local mortgage broker to refer you as a free source to distressed homeowners. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. The only option left then to these distressed owners is to sell their homes fast.
Some of these homeowners are not really familiar with foreclosure processes and so they need honest counseling and guidance. You can give the owner a fresh start by offering to purchase their house.
You can also find preforclosure homes in an online preforeclosure database. If you search this online data base you will be able to fin lead of preforeclosure properties. You should look for a reliable online service. Choose an online foreclosure database that lists preforeclosure properties. If you search for preforeclosure properties in some online sites, you will not find any results with preforeclosure properties. The best online foreclosure database has a lot of information to offer including a list of preforeclosure properties all over the country, the pay off, equity, attorney handling the case and other information. You can find this online foreclosure system fast, easy an accurate. 20 to 30 leads can be generated each month which gives you a list of properties to acquire that is way under market value.