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Staying One Step Ahead with Preforeclosures

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By : Jacquelyn Marks    99 or more times read
Foreclosed homes and other foreclosed properties are cheap ways to acquire prime real estate at a discount, but the competition can sometimes be too fierce to produce great bargains.

This is where preforeclosures come in.

A preforeclosure involves offering a short sale to a homeowner, where the said homeowner will sell a piece of property at less than its market value. Homeowners do this to prevent foreclosure and all the hassles it entails.

Itís all about proper pacing

One of the most important benefits of preforeclosures is that you will rarely get caught up in the bidding frenzy and ďas isĒ purchases involved in the traditional foreclosure process. For starters, preforeclosures leave a lot of room for negotiations on the table. You can browse short sale listings and preforeclosure listings, or the homeowners can approach you when you advertise your intent to purchase homes for cheap.

You still need to operate within a reasonable amount of time, but the main draw here is that you have more time to check the neighbourhood a house is located in, the condition of the house and even what the more talkative neighbours have to say about that particular piece of property. This will significantly reduce the chances that you end up with a house that you will pay for more in the long run.

Engaging and negotiating with the homeowner

Another benefit of preforeclosures is that you deal directly with the homeowners Ė not some random clerk hiding behind a desk.

Government homes (like HUD homes) or bank owned homes are trickier to deal with because of the bureaucracy involved plus the often disinterested responses you get from the people youíll be dealing with. It is just hard to bargain with someone that really does not care much about the property being sold since itís just another piece of land they have to dispose of.

On the other hand, distressed homeowners have a vested interest in the proper sale of their property. They will be more willing to negotiate with you and iron things out in the end without having to go through the hassle involved with foreclosure deals. These homeowners will also be more willing to concede to your terms of the bargain as long as they are reasonable; which is always a plus when it comes to buying property.

Finding and helping out distressed homes

You might think that people who profit from foreclosures, short sales or preforeclosures do so at the expense and suffering of the current homeowners. While there is no denying that people like this exist, you donít necessarily have to group yourself with these jackals.

This is especially true forpreforeclosures. You are simply helping people dispose of their properties before they go into full-blown foreclosure auctions and lose even more money over the whole thing. After all, home foreclosures that are sold up at an auction return less money to the homeowner than a short sale or preforeclosure.

This is what will differentiate you from other foreclosure investors and allow you to sleep better at night. Thatís something that will definitely make any profits you make much sweeter and guilt-free. is your source for all foreclosure homes nationwide. Search all foreclosure listings for a great deal on your next home.

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