myEmpirePROIf you are interested in pre-foreclosure listings, then here are some things that you must know.
It’s no secret that the world is going through tough times.
Money is hard to come by, and it doesn’t seem like things are getting any better.
For some people, this means their homes will be foreclosed on because they can’t make monthly payments.
The last thing you want to happen to your family is for someone else or some random bank to take over your house.
Never mind that you borrowed money from them in the first place; right?
Pre-foreclosure listing is the prelude to the foreclosure and auction of a property.
It usually lasts for about 3-18 months depending on what state and if the state foreclosure process is judicial.
And it’s during this time when pre-foreclosures can represent an opportunity for fortunes because you can get real estate deals at discounted rates.
This lesson will explain everything about pre-foreclosure listings so if you are interested in pre-foreclosure fortunes, stay tuned.
The Pre Foreclosure Stage & The Process
The pre-foreclosure stage of the process is when a borrower or homeowner has fallen behind on mortgage payments and is in danger of losing their home to foreclosure.
What is Foreclosure?
Foreclosure is the act of ending a contract by the lender when a borrower defaults on a loan.
This security agreement can lead to legal foreclosure, which is when the lender takes back property under the law in an attempt to repay debts.
Some Terminologies You Should Be Aware Of
A pre foreclosure listing is created when a house becomes available for sale before it becomes officially foreclosed on.
We also refer to a list of houses in pre-foreclosure made available by the county government as the pre-foreclosure list.
The pre-foreclosure phase of the foreclosure process may last 3 to 18 months.
Pre-foreclosure rights are when lenders are required to make offer or service loss mitigation assistance before starting pre-foreclosure proceedings.
These remedies are ways that homeowners can take to avoid pre-foreclosures by changing their payment options or avoiding default.
The pre-foreclosure process typically includes five stages: pre-foreclosure counseling, pre-foreclosure listing, pre-foreclosures rights, pre-foreclosure remedies and pre-foreclosure assistance programs.
It can vary from local government to local government.
About Pre-Foreclosure Counseling:
PREVIOUS POST: 5 Tips To Finding Pre-Foreclosure on Zillow 📍
Pre-foreclosure counseling is a way to work out a payment plan for borrowers who have fallen behind on their mortgage payments.
Pre-foreclosure counseling may be required by the lender for borrowers who are at risk of foreclosure to avoid pre-foreclosure listings and pre-foreclosures rights.
There are three types of pre-foreclosure help: forbearance plans, loan modification plans, and short sales programs.
1. Forbearance
Forbearance is a way of paying what you owe on your mortgage rather than going through the foreclosure process.
It is important to note that forbearance is only available if the bank gets a court order to foreclose on your home.
2. Loan Modification Programs
A loan modification is a form of loan restructuring that can help homeowners who are struggling to make loan payments.
Loan modifications come in different levels and vary in complexity.
They may be just interest reduction or principal reduction, which would include more work on the part of the homeowner.
It’s important to understand what loan modification will entail before accepting one.
3. Short Sale Options
A short sale option can allow a borrower to sell their home for less than what is owed on their loan.
It can allow a borrower to avoid foreclosure by paying off the loan balance before selling the home.
While it’s not always an option, many homeowners find that they have no other choice when faced with pre-foreclosure and need to sell fast.
This is why pre-foreclosure is a fantastic opportunity to buy cheap houses isif you are a real estate investor.
How Does A House Get On A Pre Foreclosure Listing?
A house can find its way on a pre-foreclosure listing when the homeowner cannot keep up with their mortgage payments.
This can be for many reasons such as unemployment, illness, or natural disasters.
Contrary To The Typical Story; Pre-Foreclosure Is The Step Before the Takeover
For the past two years, Stacy had been unemployed and living paycheck to paycheck.
Her last job was as a nanny for a wealthy family that decided to move their household staff overseas in a cost-saving decision.
The money she received from her unemployment benefits helped with paying her mortgage until it ran out two weeks ago.
She got another job just before it expired.
But she felt that this position would be temporary since they were going through some restructuring and downsizing of employees.
A few days ago she found an eviction notice taped on the front door by the realtor who took over when her house went into foreclosure three months earlier due to missed payments on taxes and insurance premiums.
These things happen.
Fortunately or unfortunately, this represents a good opportunity for smart real estate investors who know how to market.
Where Can I Find Pre Foreclosure Listings?
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If you are looking for a way to profit big time from pre-foreclosure lists or listings, I recommend that you check out www.EmpireBIGData.com
But if you are looking for a personal home, please note the following.
Pre-foreclosure transactions are often faced with a variety of important and legal implications.
It is advised to get lawyers and real estate professionals (agents) involved before proceeding with any deal.
The reason for this is that the laws around pre-foreclosures vary from state to state.
Another downside to purchasing a property in this condition outside of cash investment purposes is the lack of financing options available.
Some believe that the majority of banks are hesitant to offer mortgages for homes on a pre-foreclosure list because the borrower is already in default.
But that’s false.
Homes on a pre-foreclosures list are like any other homes to the banks because they are not yet foreclosed on; the bank could care less.
Pre Foreclosure Properties on Zillow vs Pre Foreclosure Listings
Someone said that the best way to tell if a property is a pre foreclosure property is to search for it on Zillow.
I disagree.
If a home is showing pre-foreclosure on Zillow, it’s because you are already aware of the property or it is presently listed on the market with the help of a real estate agent.
So on the flip side, how do you find a list of pre-foreclosures without being already aware of the property?
There are a few real estate websites that I listed earlier.
So.. How Do You Buy A House Listed As Pre Foreclosure?
Foreclosure listings are available for purchase on Foreclosure.com and RealtyTrac.com, with nationwide listings to choose from.
But I recommend www.EmpireBIGData.com if you want to treat buying and selling pre-foreclosures like a business.
It will reveal everything you need to know about the property, the ownership, liens against it, the status, and market status.
You might be able to find some great opportunities on these sites, but there are risks involved with buying pre-foreclosure homes.
Homes listed as “pre-foreclosures” may have been neglected or abandoned by owners.
If a foreclosure is scheduled for the near future, it’s not unlikely that they will have been stripped of their most valuable assets.
To avoid running into any issues with these types of homes, an experienced agent who can check out your potential investment before buying will be a great asset.
Can Real Estate Agents Help You Access Pre Foreclosure Listings?
Back in the day, it was a great secret.
You would have to ask a real estate agent to help you access pre-foreclosure listings that may not be available on the market.
These properties have always been a great bargain for homebuyers, but they didn’t show up on listing services.
You might need to contact a real estate agent who has connections and relationships with banks and homeowners to make this happen.
Real estate agents used to have exclusive access when it comes to new listings coming up for sale in your area.
They were already part of an exclusive network where they know about these deals before anyone else does.
If you were looking to get a deal on your dream home or deal properties for your portfolio, these were the people you needed in your circle.
Today, with tools like www.EmpireBIGData.com, things are different.
You have access to all the data plus analysis and marketing tools to capture the attention of the owners of these pre-foreclosures before they get taken away by the bank without having to chase a real estate agent around.
On the flip side, real estate agents are very useful for you once you have some value to bring to them first.
For example, after buying and fixing a property, a good real estate agent becomes a great asset to get the property sold in the retail market.
They can also be great foot soldiers for virtual real estate wholesale deals.
Pre Foreclosure Fortune Secret
Preforeclosure properties offer the best deals, but people often don’t know where to start looking and what they should do first.
I created this lesson to show you how to find these properties and give you tips on how to make a fortune from them.
There are 5 steps…
You want to get an idea about what preforeclosure properties are available in your area.
That’s the first step; data.
And here is the link to over 150 million properties data which include nationwide pre-foreclosure.
A Typical Real Estate Investor Loves Pre-Foreclosure Listings
As a Real estate investor who loves pre-foreclosure listings, I started my career years ago finding properties before they’re foreclosed on by the bank.
Real estate investors like me are always looking for new homes that can be bought before foreclosure at a low price.
I’ve found that when you buy these homes, you can get them much cheaper than if you waited until after foreclosure and they go on the public auction post-foreclosure.
5 Benefits of Buying Foreclosures Before the Bank Does.
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- You can often find homes with high value for your money seeking out properties in need of minor repairs.
- You have an opportunity to act quickly to buy without any competition from other bidders.
- It’s an excellent way to build your real estate investment portfolio and make a lot of money doing it.
- You get to buy at rock bottom prices before they go up even further after foreclosure or auction post-foreclosure.
- It gives investors like you and me the ability to resell these properties at a much higher price.
I’ve been able to make a quick $82,000 net profit from buying and selling pre-foreclosure homes.
Real estate investors with marketing skills and tools can find some amazing deals with foreclosure properties.
And it’s definitely something I recommend you consider if you want to make money in Real Estate investing.
Conclusion
The lesson shows you the foreclosure process, how to find pre-foreclosure properties and provides tips on what you need to take care of before buying one.
If all of this sounds intimidating and you want help enacting these principles, let us know.
Our team is ready and waiting to partner with you in your search for a property that’s just right for your needs.
Don’t forget to download your 2 free books
Smart Real Estate Wholesaling and…
Real Estate Money Secrets at:
www.SmartRealEstateWholesaling.com
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