The pre foreclosure property’s loan is actually in default. The defaulted loans are in the public records and this leads to the initiation of the pre –closure process. This pre closure process may last for 90 days to as long as the 10 months and the entire process culminate only with the public auction or with the trustee sale. The seller has to sell the home before the completion of the pre foreclosure process otherwise he will lose his property. Well the stage of the pre closure no doubt can result in some real bargains.
Buying a pre foreclosure home can be an attractive deal for you
The owner of the pre foreclosure homes may hope for a prequalified buyer who can actually aid him to avoid the impending foreclosure .So in case you are looking to buy a new home then buying a pre foreclosure home can be an attractive deal for you.
Buyer has to cover all that the current homeowner owes
When you decide to buy the pre foreclosure property then you don’t necessarily have to arrange for the mortgage and don’t have to make the down payment the way it is done while purchasing a normal property. You have to cover all that the current homeowner owes. So you will be responsible for paying the loan balance and any of the liens on the preforeclosure home and also the unpaid mortgage and insurance too.
The total cost that buyer pays to buy pre foreclosure homes would be less than the overall value of the property
The total cost that you would pay to the owner would be less than the overall value of the property. Buying a preforeclosure property provides you an opportunity to pay the price which is lower than the market value of the property. Before making a deal you should always check out the distressed property laws which are prevailing in your state. Most of the buyers of the pre foreclosure homes are just the seasonal investors and they are not the first time home buyers at all.