Investing in a foreclosed home is relatively easy. Banks have a huge inventory of foreclosed homes and they frequently promote auctions to clear out their stock. Most investors modernize the homes, flip them or rent them out to create a profit. This is a fine idea but industry expert Jeff Adams points out that smarts investors recognize another choice for making revenue.
The pre-foreclosure is the first phase of the foreclosure process and the possessions still belongs to the homeowner but he has missed expenses. As a result, the lender has started the process of claiming his property. Throughout this time, the homeowner has the option of selling his property and paying off the credit. This is a critical time for the homeowner but a very good time for an investor.
Homeowners who are in pre-foreclosure are normally provoked to sell. This is because they still own their property and by selling, they can pay off the loan and still have some cash left over to invest in a new property.
As the owner is provoked to sell, they are generally agreeable to discounts on the purchase price. With savvy negotiating, it is likely to buy property below market value as well.
As the landowner is already in house, they are aggressively maintaining the home. As a result, you are getting a home that is ready to shift in. This might not be appropriate for all homes but it is generally true. It is also advisable to check the home prior to you quote a purchase price to the proprietor.
For more infrmation : Jeff Adams Real Estate