27 July 07 - 12:24Preforeclosure Investing: A Pocket Summary

Banks don’t want to have foreclosure property on their hands. What this can mean for you is a huge real estate investing opportunity: buying properties that are in preforeclosure. A preforeclosure is a property on which the bank has begun foreclosure because the owner has missed several mortgage payments. When the bank initiates foreclosure on a property, you can buy it up to the day of the foreclosure auction. Done correctly, buying preforeclosures can be a profitable real estate investing venture. Buying a preforeclosure has many benefits:

• A low cash down payment on a preforeclosure is possible if structured properly.

• You have ample time to research preforeclosure properties—you can buy a preforeclosure property up until the day of the foreclosure auction.

• Unique and flexible sales agreements are possible.

• Acquiring a preforeclosure property affords you a real estate investment at a discount averaging from 20% to 35% off market value.

• When you buy a preforeclosure, you help save the homeowner’s credit by avoiding a foreclosure auction.

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