You’d think it was cheating – to find “pre foreclosures”. When everyone else is looking at bank foreclosures already in foreclosure proceedings, you’ll be busy getting to the deals before they even become foreclosed property!
Here’s one of your first lessons in house foreclosure investing:
Pre foreclosures allow the mortgagees in default to sell a home and use the proceeds from the sale to satisfy the mortgage debt. They can sell the bank owned property even though the proceeds will likely be less than the amount owed.
We’ll share with you how a property becomes a pre foreclosure. Then you’ll get even more information and the best kept secrets from our Foreclosure Investing Kit.
The outcomes for a foreclosed property are: 1) the owner is able to pay off the loan during a state-mandated grace period also known as “pre foreclosure”, 2) the borrower is able to sell the property to a third party and pay off the mortgage, again it’s during the pre foreclosure period, 3) a third party purchases the home at the end of the pre foreclosure period, or 4) the bank takes ownership of the pre foreclosure property via an agreement with the mortgagee or purchases it at public auction.
Banked Owned Property
The bank has the option to purchase the property at any time, either during the pre foreclosure period or after it. When banks purchase the pre foreclosure properties, the homes are referred to as REO property, (Real Estate Owned by the lender), also referred to as bank owned properties.
So rather than look at a house foreclosure when it’s already in the courts, find it in pre foreclosure! Contact us to get the best start in your foreclosure investing endeavor; we’ll show you how!