If you are interested in buying a house from a distressed owner in preforeclosure, the results would be beneficial to both distressed homeowner and the foreclosure investor. The biggest benefit of buying a house at preforeclosure stage is that you can prevent the owner from losing his property to his creditors and you will also acquire a very affordable property whose value is way under the market value. You can also gain profit from this preforclosure home that you will buy if you assign the contract to another investor, or if you have it renovated and sole, or use it as a rental property.
Where do we find these preforeclosure properties then? Here are 3 sources of real estate leads.
The first thing to do is to check out your county clerk or recorder’s office. There are public records that show transactions between homeowner and their lenders. The official notice filed against the homeowner by the lender after they miss even a single payment is called NOD or lis pendens. Depending on where you live, you can actually buy a list of these notices for a certain amount. Your are not likely to get contact info on the homeowner so be prepared to do some research to track them down. You need to be ready to spend some time since there are a lot of documents to check out. There is a need to spend time in doing research since it is possible to find foreclosure leads.
If you go to a mortgage broker, he will be able to provide you with a list of preforeclosure properties. Let the mortgage broker refer you to preforeclosure homeowners as a free source. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. They can opt to sell their property to real estate investors for a fast sale.
Many homeowners do not really understand foreclosure processes and this is why they need counseling and guidance. You can give the owner a fresh start by offering to purchase their house.
Another source of preforeclosure home leas in an online foreclosure database. If you use an online foreclosure database, you can easily get leads on preforeclosure properties. But you need to choose the right online service. Choose an online foreclosure database that lists preforeclosure properties. If you search for preforeclosure properties in some online sites, you will not find any results with preforeclosure properties. However, there are online foreclosure websites that actually list preforclosure all over the country, including the pay off, equity, attorney handling the case and many others. If you want fast, easy and accurate preforeclosure information, check out the online foreclosure database. 20 to 30 leads can be generated each month which gives you a list of properties to acquire that is way under market value.