Buying pre-foreclosure property can be a real deal; but, the process is complex. The pre-foreclosure stage is in between the note of Default and the actual sale of the property. You should recognize that throughout this period, the house is not really on sale because the owner may be able to pay off his loan.
Pre-foreclosure homes are not for auction and owners may not be interested in sales. Still, they are listed on real estate sale sites, county offices, newspapers, etc., as they are in the foreclosure process.
According to Jeff Adams, after foreclosure is confirmed, the owner has 2-3 months to pay off his loans. This is called the reinstatement period. Previous to you contact the owner, make sure the goods is in pre-foreclosure. The best way to make sure that the possessions are being sold is to contact the attorney or trustee dealing with the foreclosure.
You can test the market value of the house by researching the assets online and through real estate agents. When you have ascertained the property value, Jeff Adams scam avoidance tells that you can go further on and contact the proprietor to make an offer.
You will need to check public records to find out accurately how much of the mortgage is pending and to validate any other liens on the house. But, once a purchase price is reached, make sure you put it in writing instantly.
An imperative point to keep in mind is that in the pre-foreclosure stage, the homeowner can still sell his home to you without the lender or court. Since the complexities concerned, it’s a recovered idea to complete a pre-foreclosure sale after you’ve complete all the necessary research.