The Pre-Foreclosure Problem Solver

by : Joe Mack

In today’s market the numbers of foreclosures popping up in our neighborhoods are becoming outrageous. We always have had a few foreclosures popping up liking that one hair on the top of your head. You know it is there and it annoys you but eventually you don’t realize it is still there anymore. Where I live there is about four foreclosures on my block not including several for sale trying to escape their sub-prime loans that are now adjusting. In this time of our housing crisis don’t be sad make the best out of the worst. We all need to become problem solvers to fix our communities. At the same time we can help individuals and families and even benefit ourselves. Don’t you want to look like the hero while still making a profit?

To begin investing in the foreclosure market you will have to start by locating your future investment. One of the best places to look is in your local newspaper’s legal notices. It will show you everyone going into foreclosure in your area. A title company is a great resource of information about liens, back taxes, labels, and other information needed for any investor new or old. Take a walk into your office and sit down at your computer. There you can search for foreclosures all day long all around the United States to your heart’s content. If you feel up for a little leg work take a drive to your local county recorder’s office and you can look up information pertaining to foreclosures.

Every potential property you see will take you into different challenges people encounter in their lives from death to divorce. Every situation will have different courses of action that need to be taken. Your main goal is to help them keep their home or work a deal for you to purchase it from them. Whatever deal you strike it should be beneficial to both parties. Hopefully you will be able to make a deal. The worst thing that can happen is you tried to help someone and failed. Most people out there don’t even try to help. Don’t feel bad if you’re unable to help someone. At lease you have tried your best.

When dealing with foreclosures personally with no realtor you will have to negotiate with the bank on the owners behalf. You will need to get proper documentation from the home owner for the lender to even speak with you. Typically you can negotiate with the lender to defer the payments for significant period to hopefully get the home owner back on his feet, but in most cases even with time that wouldn’t help. The bank will typically move about ten to twenty percent on the price. The biggest thing to the bank is that the home owner doesn’t receive any money compensation from you in the deal. The negotiations can take a few weeks in time. If the bank takes your offer you just earned yourself an investment property under market value and helped someone avoid pre-foreclosure. I hope you enjoyed my general over view on buying pre-foreclosure properties.