Find preforeclosure investing opportunities before the property goes through foreclosure process. You can find the best buys by contacting homeowners before the lender takes over. You can make arrangements with homeowners and lenders to make both parties happy while you get a good deal.
Start with what the homeowner needs. You are not taking advantage of anybody’s misfortune. You are creating a win-win situation: You save homeowners from foreclosure or bankruptcy and help lenders to recover their money. You also deserve your share in return for your efforts and investment. In other words:
* Homeowner gets out of debt (and trouble).
* Bank/lender avoids bad loan.
* You acquire a property, and make it more valuable. And, profit from what you do.
What do you need not to miss the preforeclosure option?
To be successful, you need to convince the bank. Then, you need to negotiate a good deal with the owner. Remember: During pre foreclosure stage, you need written permission from the borrower (homeowner) to deal with the lender. Otherwise, the lender is prohibited by law to disclose financial information about its borrower.
Here are some steps to get a pre-foreclosure opportunities:
* Find loans in default. Check lis pendens in your county. The courthouse and newspapers are also good sources of information.
* Get in touch with the owner. Writing a letter and explaining how you can help is effective: Stop foreclosure + save owner’s credit rating and perhaps provide him/her some cash in hand for home moving and perhaps first month’s rent or deposit. Follow up your letter and pay a personal visit.
* When you talk to the owner, investigate whether there are other liens or judgments on the property. Look at the property, tell the owner about things to be taken care of. You may also mention approximately how much foreclosure repair will cost following your foreclosure inspection or home inspection by professional home inspector.
* Calculate the equity. Estimate your profit after rehab using your InvestorCompsOnline account. Make your offer.
As you can see Pre-Foreclosure properties are potentially very profitable real estate investments.