Pre-Foreclosure Sales

We all hear about the "pre-foreclosure" market, but what is it? Well, everyday across the United States, thousands of homeowners receive written notice from their mortgage company that a foreclosure action had started. In Tennessee, this can begin in as early as 61 days. Your state may be different. I won't go into the details about foreclosure in this post but will try to give you some good information about the period from notice to the home owner until date of sale. During this period, the borrower may be getting ready to leave, may be in denial, may have already vacated the premises, or else may be doing nothing at all. These notices of foreclosure are typically posted in a public record such as a local business newspaper each week or on their website. As a serious investor, there is nothing wrong with contacting these people offering your assistance. You may be able to work out an arrangement that will let the borrower avoid foreclosure (and the pressure and stress associated with it) while picking up a piece of property at a deep discount. You may have to deal with the lender or the lender's agent if you are going to do a "short-sale". When you are ready to step up to the table to present your offer, be prepared to deliver the cash quickly. My last flip was a pre-foreclosure short sale. I helped the home owner avoid having a foreclosure on her credit report, the bank accepted about $20,000 less than the existing first and second mortgage and I got a great house to renovate. I highly recommend the book THE PRE-FORECLOSURE PROPERTY INVESTORS KIT by Thomas J. Lucier available at www.amazon.com to learn more about this subject.