| If you are on a limited budget but would like to | | | | through a real estate company is that you will pay |
| purchase a home, you may want to consider | | | | more. Realtors generally list homes closer to assessed |
| foreclosures or even homes that are in the pre | | | | value, than properties listed privately. Part of the |
| foreclosure stage. There are pros and cons in buying | | | | purchase price of course goes to paying their |
| pre foreclosure homes or foreclosed properties. | | | | commission, so they will attempt to sell for as much as |
| You can locate foreclosed property easily on the | | | | possible. |
| internet or through local listings, since foreclosures are | | | | In any circumstance, a pre foreclosure will be cheap, |
| subject to public notice. You'll have to search harder to | | | | but you can probably save more if you negotiate |
| locate pre foreclosures. With that said it may still prove | | | | directly with the seller. Homeowners whose homes |
| better for you to purchase a home that is in pre | | | | are in pre foreclosure are under tremendous pressure |
| foreclosure, if you are planning to live in the house. | | | | to sell before their home enters foreclosure. If their |
| Too often foreclosed homes can be subject to | | | | house is seized this has a very serious effect on their |
| redemption laws, or you may have the hassle of trying | | | | credit rating. To avoid this, homeowners may offer you |
| to evict homeowners before you can move in. You | | | | a truly great deal just so they can clear up their debt |
| frequently don't get an opportunity to view the inside of | | | | before they lose their home. |
| a foreclosed home because they are often sold at | | | | One of the cons of dealing with the homeowner |
| auction. You'll probably want to see what you're getting | | | | directly, is that you may at some point feel the brunt of |
| if you're buying the house as your principal residence. | | | | their anger. They may even blame you for their |
| If you are buying a home that is in pre foreclosure, the | | | | problems and it can get unpleasant. |
| process will be the same as with any home purchase. | | | | There may also be a lot of uncertainty on their part as |
| Many pre-foreclosures are listed through a real estate | | | | to whether they really want to complete the deal or |
| agent. This is a benefit because you will be able to | | | | hold out, hoping they can repay their arrears and stay |
| view the home and communicate to the homeowner | | | | in their home. Also, you will have to work closely with |
| through the realtor. You can also conduct your | | | | your lawyer to be sure the purchase agreement is set |
| negotiations at arms length from the homeowners. | | | | up correctly. |
| Homeowners who are more or less forced to sell are | | | | Only you can decide if these problems are worth the |
| often angry and upset, so purchasing through an agent | | | | extra money you will be saving. But the bottom line is |
| can be a real plus. | | | | that buying pre foreclosure homes can be a great |
| The biggest downside of purchasing a pre foreclosure | | | | way to find an affordable home. |