Bank Owned Property
One of the ways a house foreclosure ends is by the mortgagee selling the home and using the proceeds from the sale to pay the mortgage debt. They can sell the bank owned property even though the proceeds will likely be less than the amount owed. If they don’t, it could become a bank foreclosure at the end of the designated time period.
The advantage to the borrower is that they can get out from under the mortgage without seriously damaging the credit. Here’s where you come into the picture. If you can make a deal to buy a pre foreclosure home, not only are you beating your competition, but you are also likely to purchase the foreclosed property at 20 to 40% below market value!
Pre foreclosure is the first step in the beginning of a troubled mortgage when the mortgagee is unable to pay the mortgage on time, i.e. default on loan payments. The first thing that happens is the bank sends a letter to the borrower which puts them on notice of default. The bank also files a public Notice of Default, also called a “Lis Pendens”.
Buying a property in pre-foreclosure involves approaching the borrower and offering to buy the property. The other advantage to a borrower proceeding with selling you the home during pre foreclosure is that they can get cash for some of the equity they have in the pre foreclosure home. Don’t worry, you’ll have a good amount of time to research the title and condition of the pre foreclosure property to make sure of your offer and cost to acquire, fix up or resell it, and make money.
Buy Foreclosure Homes
So now you see, when you buy foreclosure homes or pre foreclosure homes, you have an advantageous position that allows you to make an almost instant profit! Contact us to get the fastest start in your foreclosure investing.