Buying Before Foreclosure: The Flexible Foreclosure Buying

I’m sure you know what pre-foreclosure is. But do you know that buying a home before foreclosure can save you up to 40% of the home’s market value before foreclosure? Or are you actually already thinking about buying a pre-foreclosure? Either way, you will need information to learn more about pre-foreclosure and decide your strategy for buying pre-foreclosure.

FYI, pre-foreclosure occurs when the homeowner has missed at least one loan payment. The lender will then issue a Notice of Default which is a public record asking the homeowner to respond to the unpaid payment / loan. This is the first legal stage of a home foreclosure. Homeowners must respond quickly to show their motivation to solve the problem. Homeowners in foreclosure will be highly motivated to search for home buyers to purchase their home during this same period.

There are always advantages and disadvantages to buying before foreclosure. You have to achieve a balance point within the advantages and disadvantages. Buying before foreclosure could be very prosperous in return, but on the other hand, it could be a nightmare.

Speaking of its benefits, pre-foreclosure purchase sale agreements could be flexible and adjustable. Because the deal only involves 2 parties: the buyers (us) and the homeowner. So as long as the pre-foreclosure owner agrees, the deal is always negotiable. Second, buying before foreclosure could save you up to 40% of the market value of your home in foreclosure. It means that if the market value of a home in foreclosure is $ 250,000, you could save up to $ 100,000. Surely your neighbors will envy you for owning the same house as them but with the different price they are paying.

Third, buying a pre-foreclosure home directly from the owner versus buying a foreclosed home through auction or REO (real estate ownership) allows you adequate time to research the conditions of the home. foreclosure As stated above, the agreement involves only you and the owner, you can always see the title and other details of the home in foreclosure as long as the owner gives the green light, right? In most cases, buying before foreclosure requires a lower down payment and this is the fourth advantage of buying before foreclosure. As long as you have your lender, everything should be fine.

Of course, buying before foreclosure not only has these 4 advantages, but they are the main one. Having so many advantages when buying before foreclosure, does that mean that buying before foreclosure is easy? I doubt it. Great deals always take effort, and good things don’t get you easily unless you’ve planned your strategy correctly.