Pre-foreclosures - Minimum Risk, Maximum Profits

By Clifford Carr

The term pre-foreclosure, just like it sounds, means that a property or home is about to go into foreclosure. You can get some great values here, before they are seen by the masses looking for foreclosure deals. Prices are generally directly negotiated with the owner, who is motivated to avoid foreclosure.

The market for pre-foreclosures is reaching record levels namely because of the current sub-prime real estate issues and weakening economy. Real estate experts will tell you that investing in pre-foreclosure homes is one of the most prosperous ways to play real estate, and that the timing for great opportunities could not be better then it is now.

Depending on your situation buying a pre-foreclosure home can be an improved method of acquiring property rather then buying at an auction. Auctions more often then not require that you have the necessary cash on hand in order to bid. When buying pre-foreclosure homes, however, you don?t necessarily have to have cash on hand.

The main advantage of a pre-foreclosure is you get to meet the people who's house your interested in acquiring in a less anxious environment then at an auction. With an auction homeowners will usually remain anonymous.

One of the biggest advantages of purchasing a pre-foreclosure over an auction is that you can inspect the property before it goes into auction. At this point the property owner is still living in the home so obviously you want to call on them and take a look around the house to see what kind of condition it is in. If the owner feels you make be able to help them, they may disclose if there are any internal problems with the house (i.e. water damage, electrical issues, etc.). Also if the owner is co-operative and you have enough time it would be advised to get a property inspection done as well.

Pre-foreclosures provide the opportunity to see what sort of work needs to be done to the premise, and provide you with an idea as to the budget required to do so. You now have much more information then you would before a foreclosure auction to make the right decision of whether or not to purchase.

So now you can see that buying at the pre-foreclosure stage has some nice advantages over buying at auctions or from a realtor. It really comes down having the right information to make the right choice, at the right price. - 23196

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