Preforeclosures - Are they Better then Foreclosures?
It's unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.
Many of the 'for sale by owner' signs that you see are from owners that are in pre-foreclosure. The bank usually allows the homeowner time in which to try and sell their home before it is foreclosed. This is common because the bank is not in the real estate business and would prefer the current owner sell the home to cut their losses rather then having to seize the home themselves.
Here are several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:
- Pre-foreclosed houses are often times cheaper considering it?s being sold by a home owner that is in a hurry to sell it before facing foreclosure.
- You will be given good opportunities to ask the home owner questions concerning the home.
- There will probably be less competition for a pre-foreclosed home than a foreclosed home at an auction. You won?t have to worry about placing the highest bid.
- You will be given more time to consider your finances before making the decision to purchase a pre-foreclosed home.
- Auctions can be either overwhelming or lead to egotistical or emotional decisions.
- You have more time to have a pre-foreclosed home inspected than you would at an auction. You will be aware of any potential problems the house may have.
- You will be allowed to make a low down payment on a pre-foreclosed house. At a government auction you would be required to pay the total amount in cash.
As with any house purchase make sure you check for any judgements, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing. - 23212
Many of the 'for sale by owner' signs that you see are from owners that are in pre-foreclosure. The bank usually allows the homeowner time in which to try and sell their home before it is foreclosed. This is common because the bank is not in the real estate business and would prefer the current owner sell the home to cut their losses rather then having to seize the home themselves.
Here are several reasons that real estate experts feel it?s a better idea to purchase a home during a pre-closure period instead of waiting to buy a foreclosed home at a government auction:
- Pre-foreclosed houses are often times cheaper considering it?s being sold by a home owner that is in a hurry to sell it before facing foreclosure.
- You will be given good opportunities to ask the home owner questions concerning the home.
- There will probably be less competition for a pre-foreclosed home than a foreclosed home at an auction. You won?t have to worry about placing the highest bid.
- You will be given more time to consider your finances before making the decision to purchase a pre-foreclosed home.
- Auctions can be either overwhelming or lead to egotistical or emotional decisions.
- You have more time to have a pre-foreclosed home inspected than you would at an auction. You will be aware of any potential problems the house may have.
- You will be allowed to make a low down payment on a pre-foreclosed house. At a government auction you would be required to pay the total amount in cash.
As with any house purchase make sure you check for any judgements, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing. - 23212
About the Author:
Read reviews on the top pre-foreclosure sites to see what they have to offer at government auctions review or go direct to preforeclosures
posted by X - Men @ 12:33 AM
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