Types and Stages of Foreclosure homes:

1. Pre-Foreclosure Properties

What is pre-foreclosure?

Pre-foreclosure provides the foreclosure buyer with their first profit opportunity and also gives public notice of the foreclosure process. It also gives the homeowner that has defaulted in payments enough time to sell the home or amend the default and avoid loss of the home.

How can I find pre-foreclosure homes?

You can locate pre-foreclosure homes through listing subscriptions, newspapers or by simply contacting a foreclosure attorney. You can also locate such properties by subscribing to Foreclosure1.com. Once you become a member, make sure to take advantage of our online listings, which include thousands of available pre-foreclosure homes. We also recommend you to look in local newspapers, which publish "Notices of Public Sales", or trustee sales.

How can I buy pre-foreclosure homes?

In order to purchase a pre-foreclosure home, a written contract must be submitted directly to the owner because the property is still owned by homeowner during the first stage of the foreclosure process. We recommend you to contact the homeowner first by either visiting them, calling or by writing a letter of proposal. One of these benefits of contacting the homebuyer is that you can find everything you need to know about the physical and financial aspects of the property.

In order to determine the property value and if it is worth purchasing, background information of the home is necessary. By assessing the cash flow the property can provide which will give you a good idea if the property is worth purchasing. An attorney must be notified to cease the foreclosure process once you intend on purchasing a property.

How much money is needed to purchase a pre-foreclosure home?

When you first begin this process, a great deal of money is not needed. A deposit of $1,000 is usually the amount necessary. You will be required later on to get a hold of the additional funding in order to pay off the debt of the property.

What should I be aware of when buying pre-foreclosure homes?

When looking into purchasing pre-foreclosure homes make sure of the amount of debts a pre-foreclosure property has. These debts may still be on the property until it is sold. You just might be obligated to pay all debts of the property before purchasing it. Unexpected surprises during post-purchase can be avoided by finding out information of the foreclosure home before purchasing them.

We also recommend you to find out who holds the title of the property. If there is only one holder, or many holders, they must all agree and sign the contract of sale.