| In today's real estate market many homes are facing | | | | preforeclosure. This can be a way to avoid negotiating |
| or have already gone into foreclosure. If you are | | | | with the sellers during the preforeclosure stage. There |
| someone who is looking to start investing in real estate | | | | are some disadvantages to purchasing in an auction |
| now is the time. There are many ways of obtaining | | | | instead of in a preforeclosure sale. |
| property that have been foreclosed on. | | | | 1) In the preforeclosure stage you work directly with |
| Preforeclosures: | | | | the owners so you will know what to expect. In the |
| Preforeclosure is the period before the notice of | | | | foreclosure auction you don't know the type of people |
| default is filed. There are advantages to buying in the | | | | you will be going up against. |
| preforeclosure stage over the foreclosure auction: | | | | 2) In foreclosure auctions things can get nasty and |
| 1) You are given the chance to inspect the property, | | | | sometimes even dangerous. |
| unlike when you buy at the auction. This provides you | | | | 3) In a foreclosure auction the terms are not negotiable |
| with the opportunity to determine the condition of the | | | | and they are final. You are not able to just walk away |
| property and to budget in the cost of repairs. This | | | | from the sale because you are not happy with the |
| eliminates any surprises. | | | | terms. |
| 2) You will provide the owners a way to keep their | | | | REO (Real Estate Owned) Investing: |
| current credit standing by avoiding the damage | | | | These are properties that the lenders have taken over |
| resulting from foreclosure. This will give the owners the | | | | after they failed to be sold at a foreclosure auction. |
| incentive to provide you with the best deal for | | | | The lenders will try to sell these properties as quickly |
| purchasing their home. | | | | as they can. Banks do not like to hold on to properties |
| 3) The terms of sale are more flexible and if the terms | | | | very long. Investing in REO properties is great for the |
| are not acceptable to you then you can just walk | | | | first time buyer. |
| away. | | | | There are other ways to purchase properties that |
| Foreclosure Auctions: | | | | have been defaulted on besides those listed above, |
| These are properties that were not sold during | | | | such as; Sheriff Sales, Bankruptcies, Tax Liens, etc. |