| Buying houses from a distressed owner in | | | | These distressed homeowners usually have no option |
| preforeclosure usually results in a win-win outcome for | | | | but to sell their home. |
| the distressed homeowner and the foreclosure | | | | Most homeowners are not familiar with the |
| investor. | | | | foreclosure process and are in need of really honest |
| The advantage of buying at the preforeclosure stage | | | | counseling and guidance. Salvaging some the owner's |
| is you can help the owner by stopping a potential | | | | equity in the form of cash at closing, should you |
| foreclosure on his credit and at the same time you | | | | purchase their house can give the owner a fresh start. |
| acquire a property way under market value that you | | | | So..having a few mortgage brokers referring |
| can sell, rent or assign the contract to another investor | | | | homeowners to you can be a good source of pre |
| for a nice profit. | | | | foreclosure leads. |
| So...WHERE are these preforeclosure properties and | | | | Third - Online Preforeclosure Database |
| how do you find them? | | | | Using an online foreclosure database is the easiest |
| First - Check the your county clerk or recorders office. | | | | way to get great leads BUT you need to pick the right |
| A NOD or lis pendens is an official notice filed against | | | | online service. |
| the homeowner by the lender after they miss even a | | | | You need an online foreclosure database that lists |
| single payment. These transactions are considered | | | | "preforeclosure" properties. |
| public record. | | | | My experience is many services claim they provide |
| You may have to pay for this list, depending on where | | | | preforeclosure properties but when you search the |
| you live. You are NOT likely to get contact info on the | | | | site you come up with 0 results. |
| homeowner so be prepared to do some research to | | | | Fortunately, there are online foreclosure websites that |
| track these folks down. | | | | actually list preforeclosures all over the country, |
| You'll be looking at LOTS of documents so be | | | | including the pay off, equity, attorney handling the case |
| prepared to spend some time. | | | | and many other need to know's.. |
| You can find preforeclosure leads this way however | | | | By the way, Equity is the key piece of information |
| you will be spending lots of time..many hours...doing | | | | when choosing which preforeclosure homeowner to |
| research. | | | | pursue...I wouldn't even pick up the phone to contact |
| Second - Mortgage Brokers | | | | someone without at least 40 % equity. |
| Ask local mortgage brokers to refer you as a FREE | | | | Make sure online service you use gives you the equity |
| source to distressed homeowners. | | | | of the homeowner. |
| Many owners experiencing difficulty paying their | | | | I prefer using the online preforeclosure system since its |
| mortgage attempt to get loan modification or | | | | fast, easy, and accurate. Generating 20-30 leads per |
| refinancing from their mortgage broker, but are unable | | | | month usually leads to a few great acquisitions at way |
| to arrange new payment terms. | | | | under market value. |