Pre Foreclosure Investing and Profits

By Jilly Willson

For the right buyer, pre foreclosure homes can be very profitable If you have the fortitude to go through the process, buying a pre foreclosure has numbers advantages over other types of investment properties Because owners of pre foreclosure properties are facing financial challenges, they are often ready to accept almost any offer. This fact often points to a huge ROI for the real estate investor The biggest hurdle in the deal is getting the bank to agree to the terms of the sale instead of foreclosing on the home

Because the bank stands to lose money either way, they will be motivated by the deal that will best minimize their losses.Essentially they are in a lose lose situation and will evaluate sales offers based upon what will minimize their losses. If a property owner has put the property into pre foreclosure by not paying on the mortgage, it is still up to the buyer to demonstrate that by allowing the sale to go through, the bank will minimize their losses.

A result of this fact, investors that purchase homes in pre foreclosure often put together full short sale packages to provide to the bank. They learn who the loss mitigation people are at the bank and learn what is needed by the bank to complete the transaction.

While this is not necessary for the periodic investor, it does have a visible benefit for the novice real estate investors.

Depending on your goals, investing in pre foreclosure homes may be a great way to profit. Just realize that it is not a wholly straightforward process

Depending on your investment goals, there is no end to the number of investing resources available to you. It is just up to you to get started. - 23159

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