Pre-Foreclosed Homes in USA
When properties are purchased with the financial assistance of lenders, borrowers are legally obligated to make mortgage payments within a specific period. If the buyer/borrower defaults, the lender begins the foreclosure process. The time that takes place between the legal foreclosure notice is issued to the house owner and the date of auctioning the property is referred to as the “pre-foreclosure” period.
Acquiring pre-foreclosure property can offer thousands of dollars in saving. Pre-foreclosures often boast closing price bargains, as the investor pays cash in order to bail out the homeowner. Potential buyers can then negotiate for a loan or draw up a contract with the current owner.
When negotiating with the previous owners, who may be in dire financial circumstances, be sure to proceed with prudence. If the owners can suddenly make their mortgage payments, make sure you have an exit strategy. It rarely happens, but you must be prepared for the worst when dealing with pre-foreclosure properties.