Archive for 'Pre-Foreclosures'

A pre-foreclosure period is the time before official foreclosure occurs. It usually lasts from seven to sixty days, depending on the state. According to real estate experts, this is the period best for purchasing a home.

Usually, banks allow homeowners to sell their houses before they are even foreclosed. This gives buyers a chance of purchasing a house at a bargain.

Real estate experts share the reasons why it is more preferable to purchase a pre-foreclosed house than to wait for a house to foreclose and buy it from a government auction.

• Since distressed homeowners are in a rush to sell their homes before it is foreclosed, pre-foreclosed homes are usually offered at cheaper prices.
• You can ask any questions regarding the house you are about to buy since it is the homeowner you are directly dealing with.
• Less competition applies in pre-foreclosures since foreclosure auctions invite several bidders for each property.
• Longer amount of time can be spent in evaluating financial scenario in pre-foreclosure buying than in auction buying.
• Auctions can lead to emotional or egotistical decisions, and can also be overwhelming.
• There is more time to closely inspect a pre-foreclosed home and know its problems than that of an auction.
• At an auction, whole amount in cash is needed; while in pre-foreclosure buying, giving a down payment worth just a few hundred dollars can do.

It is important to see to it that the pre-foreclosed property you want to buy is free from liens or judgments. Do not forget to bring an expert to inspect the house and let you know if there are any problems with it.

The risks involved in purchasing pre-foreclosures are just the same with traditional home buying, only a lot cheaper. Pre-foreclosures can even be resold in a price higher than its cost when you first purchased it.