When a mortgage loan is in the pre foreclosure stage, the property is ripe for buying; no one is making payments on the property, and both the owner and the lender deeply want to turn the situation around. Even before a property reaches pre foreclosure, many homeowners are in situations where they’re eager to sell in order to remove a huge financial burden from their shoulders. Here are some situations where you’re likely to find motivated sellers:
Pre foreclosures – As mentioned above, when a homeowner finds his property in pre foreclosure (his loan is in default status, but the property hasn’t reached the foreclosure auction date), he’s likely to be highly motivated to unload it to avoid foreclosure. He wants out of a tough situation, and you can provide him with the solution
Divorce – When couples split up and a property is involved, they may simply want to get rid of the property quickly and move on. Very often, newly single people find it difficult or impossible to maintain payments on their home with only one income. Whether they’re already in pre foreclosure, or are just beginning to fall behind on bills, they may welcome your solution.
Landlords who want out – A property doesn’t have to be in pre foreclosure for its owner to be ready to bail out. When a landlord is tired of maintaining a property he doesn’t live in, or wants to get rid of the headaches that can be caused by bad tenants, he is likely to be ready to talk to you about selling his property. If the property has gone un-rented for several months, he may be more than ready to give you a good deal on it just to unload it and avoid pre foreclosure.
Probate Properties – Though far from a pre foreclosure situation, a death in the family can leave surviving family members with an inherited property on their hands that causes them additional burdens. If several family members have inherited the property, they’re likely to want to sell the home and split the cash, rather than decide who gets to live in the home and buy the others out. Since any profit from the house is free and clear, they’re likely to be open to an offer for less than market value just to settle things.
If you’re watchful and creative, real estate deals can be yours for the asking!