There is actually an effective strategy employed by seasoned real estate investors when it comes to pre-foreclosure investing and that is timing. In order to determine whether the time is perfect to buy foreclosures, you must first understand the basics of pre-foreclosure investing.

Investing in foreclosures has proved to be quite profitable. But buyers should always be cautious when making purchases especially during foreclosures auctions. In most states, foreclosure homes are usually sold at auctions firs. If they survived the foreclosure auction then that is the time they become real estate owned properties.

Not all states experienced a rise in foreclosures rate for the month of May. In fact, the inventory of Connecticut foreclosure homes did not grow much, resulting in the state dropping to the tenth place for highest foreclosures rate. With the foreclosures situation improving, real estate investors have begun staking their claims on foreclosure homes sold at bargain prices.

The rise in the national foreclosures rate for the first quarter of this year is being blamed on the many subprime mortgages, particularly those with adjustable interest rates. But many experts believed that the increase in foreclosures rate is not reflective of the true situation in the country. In fact, the only reason there was an increase was because of four particular states: Florida, Nevada, California and Arizona.

Real estate investing is very tricky. Buyers and investors should always consider the real estate market condition before making any decisions regarding the sale or purchase of a particular property. For example, the large inventory of Washington foreclosure homes may cause some concern for buyers like you because of the probable effect on home prices. But its foreclosures rate for the month of May will make you think other wise.

It seems that reports from the California-based RealtyTrac have been greatly misunderstood. New Jersey bank foreclosures are properties already repossessed by lenders. But when the number of foreclosures in the state was reported, the number included properties in all stages of foreclosure. In reality, a very small portion of these homes in default ever reach the bank foreclosure or real estate-owned foreclosure stage. And even if they did, they should be counted only once, until they reach the last stage.

As the data for May was released, Ohio officials and residents can not help but feel disappointed. There were 4,133 new defaults, 4,096 homes for auction and 4,985 Ohio bank foreclosures. Overall, the state recorded an amazing 13, 214 foreclosure filings and remained at the fifth spot behind Florida.