Buying a Home? Get a Bargain From Pre-Foreclosures
These days, you can buy a house with a down payment most people can afford. How? Choose from homes already classified by mortgage banks as pre-foreclosure period.
A pre-foreclosure period refers to the number of days, which range from seven to 60 days, before the final foreclosure, counted from the time the property has been placed in pre-foreclosure. Most banks do not like to deal with the process of foreclosure, so they allow homeowners to sell the properties being foreclosed.
If you’ve been planning to purchase a foreclosed property at an auction because of expected price cuts, consider buying a home in pre-foreclosure. Why? You’ll even get deeper price cuts. Consider the following:
- Pre foreclosure homes are cheaper because homeowners are in a rush to sell. They are cutting their losses and they know there are lots of other homeowners trying to sell their houses in pre-foreclosure.
- You compete with less number of buyers at pre foreclosure homes than in home auctions where lots of real estate professionals, company representatives and individual buyers converge.
- You get more time to inspect a home in pre-foreclosure than in auction. You have time to check defects or potential sources of problems.
- You are not required to bring certain amounts of cash for upfront payment as you are in an auction.
- You have time to talk with the seller and ask questions that you could not ask in an auction, such as the neighborhood and community facilities.
While you have the chance to buy a house at a great bargain, you also face the risk of buying a house that will bring you troubles you didn’t expect. So take precautions. See to it that the property is lien-free and that it is not attached to a judgment or to another mortgage loan. Bring an experienced individual that you trust to check the house with you.
