Buying the house that is in the preforclosure status is something that will benefit both the distressed homeowner and the real property investor. The biggest benefit of buying a house at preforeclosure stage is that you can prevent the owner from losing his property to his creditors and you will also acquire a very affordable property whose value is way under the market value. After buying you can renovate and sell it, have it rented, or assign the contract to another inventor for a profit.
Where do we find these preforeclosure properties then? Below are the ways to find preforeclosure proeprteis.
You can first check out your country clerk or recorder’s office. There are public records that show transactions between homeowner and their lenders. One a homeowner misses one payment, the lender will give him an official notice called the NOD or lis pendens. You can actually get a copy of this list of notices by paying a certain amount which depends on where you live. The preforclosure property owner has no contact details in these files so you have to do your own research to find them. And since there are a lot of documents to check out, you should be ready to spend some amount of time to check them out. Foreclosure leads can be found here but you will have to spend lots of time doing research.
If you go to a mortgage broker, he will be able to provide you with a list of preforeclosure properties. You can be referred by the local mortgage broker as a free source to distressed homeowners. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. They can opt to sell their property to real estate investors for a fast sale.
Some of these homeowners are not really familiar with foreclosure processes and so they need honest counseling and guidance. You can help them get a fresh start by buying their house.
There is also an online foreclosure database where you can find preforclosure homes. Leads on foreclosure properties are easy to find in this online database. You should look for a reliable online service. An online foreclosure database should list preforclosure properties. There are many online sites which are not reliable and does not yield any search results. The reliable online foreclosure data base is complete with a list of preforeclosures all over the country, including the pay off, equity, attorney handling the case, and other information. You can find this online foreclosure system fast, easy an accurate. This site generates 20 to 30 leads per month which gives you a lot of choices for preforeclosure properties to buy that is way under market value.