Foreclosure House vs. Pre Foreclosure and which one makes more sense
Foreclosure House vs. Pre Foreclosure and which one makes more sense
If you've been reading online, you've noticed that more and more homes are reverting back to the lenders.
Here's the dilemma for the investors like us:
1- Do we approach and offer the homeowner while the house is in pre-foreclosure
or
2- We only go after homes AFTER they been taken back by the bank and some work has gone into them.
Here is my take...
A home in pre-foreclosure requires alot more analysis and research because there might be all sorts of hidden liens and problems attached to it.
Also, the owners might have been in it a while, incurring back interest and penalties, as well as repair costs and combine that with the fact that many homes in foreclosure are the direct result of the homes being purchased at high prices with little or no money down.
Ok, on the other side, buying from the REO department of the bank.
Well, those days are gone when you could buy at low prices from the friendly banker.
Nowdays, some banks turn over their Foreclosed Real Estate holdings to local Real Estate comapnies and you need to deal with them.
So the decision is, where can you get a safer and a better deal.
From my own experience, I find dealing with the bankers (if they have their own foeclosure department and/or the Real Estate comapny handling the foreclosed properites) is the better way to go.
Banks realize that interest rates are on the rise and they are also privy to data showing decreasing values and increasing inventory and inventory hold times.
No bank wants to hold foreclosed homes on their books and they'll make deals if you can show them a win win situations.
You are also better protected because once the bank takes over and offers the property for sale, all other liens have been taken care of.
However, don't let this stop you from looking for pre-foreclosed homes in your target area. Everything is fair game in this game.
Happy investing.
Visit House Foreclosure and Investing Blog to read Forclosure Experts discuss Foreclosure Investing and Strategies on a daily basis.
If you've been reading online, you've noticed that more and more homes are reverting back to the lenders.
Here's the dilemma for the investors like us:
1- Do we approach and offer the homeowner while the house is in pre-foreclosure
or
2- We only go after homes AFTER they been taken back by the bank and some work has gone into them.
Here is my take...
A home in pre-foreclosure requires alot more analysis and research because there might be all sorts of hidden liens and problems attached to it.
Also, the owners might have been in it a while, incurring back interest and penalties, as well as repair costs and combine that with the fact that many homes in foreclosure are the direct result of the homes being purchased at high prices with little or no money down.
Ok, on the other side, buying from the REO department of the bank.
Well, those days are gone when you could buy at low prices from the friendly banker.
Nowdays, some banks turn over their Foreclosed Real Estate holdings to local Real Estate comapnies and you need to deal with them.
So the decision is, where can you get a safer and a better deal.
From my own experience, I find dealing with the bankers (if they have their own foeclosure department and/or the Real Estate comapny handling the foreclosed properites) is the better way to go.
Banks realize that interest rates are on the rise and they are also privy to data showing decreasing values and increasing inventory and inventory hold times.
No bank wants to hold foreclosed homes on their books and they'll make deals if you can show them a win win situations.
You are also better protected because once the bank takes over and offers the property for sale, all other liens have been taken care of.
However, don't let this stop you from looking for pre-foreclosed homes in your target area. Everything is fair game in this game.
Happy investing.
Visit House Foreclosure and Investing Blog to read Forclosure Experts discuss Foreclosure Investing and Strategies on a daily basis.
posted by Mr. Foreclosure at 12:03 AM
1 Comments:
Thank you for the insights. Redemption Period is a a final opportunity for a homeowner to buy back their property after the auction or sale by paying what the home sold for plus interest and any qualified expenses. Better for you if you can arrive at this stage.
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