Pre Foreclosure Homes – The Smart Strategy

The real estate investor who can purchase property at under fair market value is in good position to see increased profits from the transaction . Where does an investor find good homes at deeply discounted cost ? One niche market is pre foreclosure homes. Pre foreclosure homes are homes that the bank or lender has filed a notice of default on, but the property has yet to be sold at a public auction or trustee sale. There is a window of time between the filing and the sale when the home owner still maintains control of the property . To stop the foreclosure, the homeowner needs to bring mortgage payments to current, or he has the option to sell the house . This window of time is the ideal opportunity for the real estate investor to make an offer on the home . As an investor, you can increase your profits through negotiating with the seller for a big discount off of the current market value of the home . As the buyer, you will also be allowed to inspect the home and discover what repairs and renovations will be necessary . This inspection will also help you determine the amount you will offer on the home . There are foreclosure subscription services that can provide listings of pre foreclosure homes. The fee for the service issmall , and worthwhile in time and research saved. The old method of combing records at your county courthouse was difficult and tedious. While getting to go through the public records costs nothing , your time should be worth more, and the little fee for the subscription service will pay you back with your first pre foreclosure homes purchase. The foreclosure market has been a favorite for the real estate investor due to the dramatically discounted prices. The same big discounts can be available on these pre foreclosure homes, with the added advantage of being able to deal and negotiate with a highly-motivated homeowner . It’s worth taking a look at the pre foreclosure homes market.