Pre-Foreclosure homes are some of the best deals to be found on the market. These sales are homeowners who are facing foreclosure, and have put their home on the market in hopes of selling before the foreclosure is final. The problem? Many of these homeowners owe more than the home is worth in today's market. We show the mortgage company our local market statistics, and ask that they allow us to sell the home with a payoff short of what the seller owes. That is why you often hear them referred to as "short-sales". So not only are you getting the home for less than the seller paid, but many lenders will accept as little as 90% of today's already low prices.

But take caution: buying a short-sale home is not something that every buyer can do. The process takes time and patience. The lenders may take up to 90 days to respond to an offer. Once they do review the contract they could accept your offer, reject all offers, or counter your offer at a price higher than the home was listed for. However if you have time, and an agent who can help you through the process, you could buy a home for less than even a repo would sell for.

Pre-Foreclosures
(short-sales)

• Highest potential for savings: You may get the home for as little as 90% of todays already low home prices
• the bank can save the thousands of dollars in legal fees of foreclosing, and the many months of carrying costs while they try to resell the home
• The seller avoids a full foreclosure
• Many of the home could qualify for FHA or VA loans
• You can request that your closing costs be paid for you
• You have time to research the investment and do property inspections
• you can request property disclosures directly from the seller
• The process can take several months before the home closes
• The listed price of the home maynot be acceptable to the bank.

Foreclosures
(auctions, courthouse sales)

• Good potential for savings
• Immediate ownership of the home
• the bank can save many months of carrying costs while they try to resell the home
• you may be competing with professionals
• homes are often damaged and do not qualify for FHA or VA loans
• The bank will try to recover the debt on the home plus legal fees from the foreclosure
• you have very little time to evaluate the invedstment
• 100% of purchase price is immediately due in cash
• The previous home owners have a full foreclosure on their credit and may face deficiency judgements
• No property disclosures are supplied

Foreclosures
(repos, REO)

• We know the listing price is acceptable to the bank
• The purchase process is much like any other purchase
• homes are often damaged and do not qualify for FHA or VA loans
• properties (especially pool homes) continue to deteriorate while vacant
• buyer must turn on utilities, at their own expense, if they wish to inspect the home
• The bank will try to recover the debt on the home plus legal fees from the foreclosure, and carrying costs while they try to sell the home
• The previous home owners have a full foreclosure on their credit and may face deficiency judgements
• No property disclosures are supplied