Government Auctions - Why Pre-foreclosures are Preferred by Real Estate Pros
Due to the recent real estate collapse, many people across the United States are losing their homes to foreclosure. The period of time before the official foreclosure is called pre-foreclosure. Depending on the state the pre-foreclosure period lasts from seven days to a 60 days. Real estate experts know that the pre-foreclosure period is a great time to purchase a home.
Many houses that are 'for sale by owner' are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.
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:
- A pre-foreclosed home could actually be cheaper then foreclosure because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.
- You will be given good opportunities to ask the home owner questions concerning the home.
- You won?t have to worry about things becoming hectic like they would at a government auction.
- You won?t have to worry about becoming frustrated from losing a bid.
- Auctions can be annoying for some people. Some people become very angry when they are outbid.
- You can bring an inspector along with you to inspect the pre-foreclosed home. You will be given more time to have it looked over.
- 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. - 23226
Many houses that are 'for sale by owner' are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.
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:
- A pre-foreclosed home could actually be cheaper then foreclosure because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.
- You will be given good opportunities to ask the home owner questions concerning the home.
- You won?t have to worry about things becoming hectic like they would at a government auction.
- You won?t have to worry about becoming frustrated from losing a bid.
- Auctions can be annoying for some people. Some people become very angry when they are outbid.
- You can bring an inspector along with you to inspect the pre-foreclosed home. You will be given more time to have it looked over.
- 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. - 23226
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Read descriptions on the best pre-foreclosure sites to see what they have to offer at government auctions review or go direct to pre-foreclosures
posted by X - Men @ 5:43 AM
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