The Pre-Foreclosure Home

The Pre-Foreclosure Home
05-19-08

There are many reasons a Home Buyer or Investor may consider buying a pre foreclosure home. The number one reason is savings. As a first time home buyer you want to save as much money as possible. As an Investor you want to find amazing deals in order to resale the pre foreclosure home and make a substantial profit or rent the home out and receive monthly income from the home.
When purchasing a pre foreclosure home there are seven steps to consider to aid in your success.

The first step is developing a tracking system that works for you.
You want to create a well planned tracking system to keep track of the pre foreclosure home properties that are interesting to you. As a pre foreclosure home buyer or investor you may be eying several homes over a small period of time and a pre foreclosure home may not stay on the market long. Most home owners that are facing the crisis of losing their home and credit failure are considering many options to avoid foreclosure. In most cases, the home owner is facing a troubled financial dilemma and is moving fast in order to get the home sold or reinstate the loan. You have to move faster in order to out due the competition. A well organized tracking system can help you keep up with the pre foreclosure homes you are pursuing.

The second step is to view the pre foreclosure homes.
This idea is great for many reasons; such as, gathering information regarding the home and its current condition. Pre foreclosure homes are sold as is in most cases you definitely want to know what you are getting yourself into. You also want to know the type of neighborhood the pre foreclosure home is located. This will also give you an opportunity to speak with the home owner and learn how you may be of service to the home owners needs. Which brings us to the third step.

Verifying the pre foreclosure home status.
While the home is pre foreclosure status the home owner has an opportunity to settle any conflict and reinstate the home loan by paying the amount he or she defaulted. The home owner is usually given a few months to do so. Of course, if the home owner pays the defaulted amount, this process stops any foreclosure action and the pre foreclosure home is off the market. To verify the status of a pre foreclosure home you may contact the attorney assigned to the foreclosure of the home or the Trustee.

The fourth step is making contact with the home owner.
This is an opportunity for you to explain to the home owner that you are seeking a pre foreclosure home and your interest in the home. Be prepared and ready to answer any question including how much you are offer and how you will make the purchase.

Now that you are organized, know which pre foreclosure home is available and which pre foreclosure home is not you and contacted the home owner: you are ahead of the game, and ready to take the final steps to a great investment. Good Luck!

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000