Thursday, November 26, 2009

Buying Homes In Pre Foreclosure

By Jilly Willson

For the informed buyer, pre foreclosure homes can be very profitable Property owners in a pre foreclosure situation are highly motivated to sell the property quickly Generally, the property owner of a home in preforeclosure is extremely motivated to get the deal done quickly. This fact often points to a huge ROI for the real estate investor The biggest hurdle in the deal is getting the bank to agree to the terms of the sale instead of forcing the home through the pre foreclosure process.

The bank may not be so eager to let the transaction go through.Essentially they are in a lose lose situation and will evaluate sales offers based upon what will minimize their losses. If a property owner has put the property into pre foreclosure by stopping mortgage payments, it is still up to the buyer to demonstrate that by allowing the sale to go through, the bank will minimize their losses.

A result of this fact, real estate investors often assemble complete packages to plead their case to the bank. They learn who the loss mitigation people are at the bank and learn what is needed by the bank to complete the transaction.

While this is not necessary for the periodic investor, it does have a visible benefit for the novice real estate investors.

Aside from market factors, the pre foreclosure market is a great way to get a good bargain on an investment property Just know that there are a number of little details that will determine your overall level of success.

There are many other resources available to learn more about investing in short sales. BestShorSales.com is a learning service that I have found useful in the past - 23309

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