REAL ESTATE TIPS

We’re in the era of foreclosures and short sales. In the wake of the mortgage crisis, the market is oversaturated with them.

Competition for foreclosure and short sale investors is on the rise because those are the hot buzzwords right now. But there is one segment of the distressed property market that is all but overlooked: preforeclosures.

Sure, there is money to be made in foreclosures and short sales. Foreclosure.com is chock-full of hot listings just waiting for investors. However, as short sales and foreclosures have taken center stage, investors have started forgetting about preforeclosures and the goldmines they represent.

Preforeclosures are simply distressed properties that haven’t been foreclosed on yet. Some of them turn into short sales, but many of them don’t because – for a variety of reasons – the homeowner doesn’t qualify.

Just because a homeowner can’t get the bank to approve a short sale doesn’t mean that they aren’t in distress. And that represents a solid opportunity for the savvy investor to both do some good and make some serious money at the same time.

Once you find a preforeclosure that interests you, it’s time to contact the homeowner. This step requires delicacy and empathy because you’ll be negotiating with someone who is in all likelihood extremely stressed out and losing sleep over their dire financial situation.

As a preforeclosure investor, you represent the distressed homeowner’s light at the end of the tunnel, their “way out.” You can offer to take their property off their hands and relieve them of the burden of monthly mortgage payments as well as the looming threat of bankruptcy.

Distressed homeowners are typically willing to sell for far below market for the service you’re offering. In other words, while you’re helping a homeowner out of a jam, you’re also creating instant equity for yourself by purchasing a home at a tremendous discount.

The best preforeclosure properties are ripe for the picking, only all the other investors are so busy with their foreclosures and short sales that they’ve failed to notice them. Less competition means more opportunity – and greater profit potential – for you.

Your preforeclosure investment strategy begins with Foreclosure.com. It’s free to search our extensive database of preforeclosure listings in your area, so get started now.