Preforeclosures are loans on property that are in default and in the process of being foreclosed by the lender. This situation presents an opportunity for a first time homebuyer, flipper, or real estate investor. In a pre-foreclosure the homeowner is still in possession of the property but is struggling with his mortgage payments. The bank or mortgage company wants its money, but the borrower does not have the means to pay. In most instances the borrower and lender want to avoid the final foreclosure, a lengthy and expensive process that is a terrible mark on the borrower’s credit and places the lender in the position of having to dispose of the property.What frequently happens in pre-foreclosure situations is, a buyer can present a reasonable offer to purchase the property, and the borrower and lender can then structure a short sale. In that event, the lender agrees to take less than the amount owned on the loan to satisfy the debt. This relieves the borrower from having a foreclosure on his credit record, and saves the lender from having to take possession of the property, hold it, possibly make repairs and market it. A short sale is a win/win/win for the borrower, the lender, and the purchaser. Foreclosure.com is an important tool in helping real estate investors find excellent properties at far below market prices. Listed on our web site are thousands of properties across hundreds of counties in every state. We are constantly updating our database, so if you do not see what you are looking for today, you can sign up for our email alerts and we will update you as new listing come in.
Learn how to find preforeclosure homes near you in this video.