It’s unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.
A lot of times the banks don’t want to deal with having to foreclose a home, so they will allow the owners to sell it during the pre-foreclosure period. You can get a great bargain in buying a pre-foreclosed home.
Here are several reasons that real estate experts feel it’s a better to purchase a home during the pre-foreclosure period instead of waiting to buy a foreclosed home at a government auction:
- Pre-foreclosed houses are often cheaper considering as it’s being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.
- Because you are working with the owner you’ll be able to ask questions about the property you wouldn’t be able to otherwise.
- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.
- More time to evaluate financial scenario then at an auctioned property.
- Auctions can be a skill in itself and many people are not comfortable in that environment.
- Less risk of potential problems because you can get a good look at the house ahead of time, and have it professionally inspected.
- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.
Always check to make sure that the pre-foreclosed home you’re interested in has no liens or judgments against it. You should also bring along someone to inspect the home for you so you’ll know of any problems. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive.
Getting ready to buy or sell a home in Utah? Make sure you visit Homes for Sale in Salt Lake City and get find out about all Homes for Sale Salt Lake City!
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