| The real estate business is growing everyday, thanks | | | | Foreclosure Auctions |
| to the enticing appeal of cheap houses that are | | | | If, for some reason, the home owner fails to make his |
| abundant on the market. The lure of potentially earning | | | | loan current, then the bank will attempt to sell the |
| a lot of money from a small investment is the biggest | | | | property at an auction to recoup its investment. If you |
| motivating factor for investors who would like to find | | | | want to find foreclosure homes, auctions can provide |
| foreclosure homes. What you must know is that there | | | | you with numerous opportunities to find properties that |
| are various stages of a foreclosure proceeding that | | | | you can flip for a short period of time. |
| you can take advantage of when investing in | | | | A foreclosure auction is one of the favorite places of |
| foreclosures. | | | | more experienced investors because of the |
| Pre-Foreclosures | | | | comprehensive property information that it provides |
| When a homeowner defaults on their payment for at | | | | bidders. Buyers who have been through several |
| least 90 days, the lender files a Notice of Default or Lis | | | | auctions already know that this is the perfect |
| Pendens that serve as a public notice to potential | | | | complement to their own research and home |
| buyers. This is the pre-foreclosure stage and one | | | | inspection tours. |
| which can be the most opportune time to buy a | | | | REO Properties |
| property. It is called pre-foreclosure because the bank | | | | Real estate owned or REO properties are those that |
| usually gives the defaulting homeowner several | | | | did not sell at the auction. Banks are obliged to keep |
| months to make his loan current. | | | | them in their possession until they are sold off. |
| In a pre-foreclosure, the sellers are usually more | | | | Interested buyers who prefer to find foreclosure |
| agreeable to offers because they want to avoid a | | | | homes from REOs usually submit to the banks their |
| bad credit score that they would most absolutely be | | | | highest offer, which the bank, in turn, considers. If the |
| tainted with once their properties are foreclosed. If a | | | | bank is not satisfied with the offer, it may either make |
| pre-foreclosure property has not been listed yet, you | | | | a counter-offer or put up a notice of invitation for |
| avoid a lot of competition that comes with a property | | | | others to bid on the subject property. REOs are |
| that appears in multiple listings. | | | | known for their clean, good titles and reasonable |
| Pre-foreclosures also afford you a lot of time to do a | | | | market price. If you know how to negotiate, you can |
| comparable analysis of market prices and have a | | | | definitely benefit from purchasing one of those REO |
| home inspection. In this way, you will be able to | | | | homes. |
| ascertain the viability of house as an investment. | | | | |