Pre-Foreclosures: What You Need to Know
if you're considering purchasing a pre-foreclosure, there are a few things you need to know. In this blog post, we'll outline what a pre-foreclosure is and dispel some of the myths surrounding these types of homes.
What is a pre-foreclosure?
A pre-foreclosure is a home that has fallen behind on mortgage payments and is in danger of being foreclosed on. The homeowner may be working with the lender to try and find a solution, such as a loan modification, but have been unsuccessful. In some cases, the homeowner may have already vacated the property.
Are pre-foreclosures for sale?
This is a common misconception about pre-foreclosures. Just because a home is in pre-foreclosure does not mean that it's for sale. The homeowner may be working with the lender to find a solution that will allow them to keep the home. In other cases, the homeowner may not want to sell the home and would prefer to go through with the foreclosure process.
If you're interested in purchasing a pre-foreclosure, your best bet is to contact the homeowner directly and inquire about their intentions. Only once you've spoken with the homeowner and they've expressed interest in selling should you move forward with making an offer.
What are the risks associated with purchasing a pre-foreclosure?
Since you'll be dealing directly with the homeowner, there's always the possibility that they could change their mind or back out of the sale entirely. You also run the risk of inheriting any unpaid liens or debts on the property if you purchase it through a pre-foreclosure sale.
Purchasing a pre-foreclosure can be risky, but it can also be rewarding if everything goes according to plan. If you're considering buying a pre-foreclosure, make sure to do your research and speak with the homeowners before making an offer or give our team a call to help you with the process.