What is a Pre-Foreclosure Purchase?

Utilizing a pre-foreclosure purchase could be very beneficial for you as a buyer. Purchasing a home at this time can help keep a seller out of the foreclosure process. Therefore, you can sometimes get a great deal on this type of transaction. Here are a few things that you will need to know about a pre-foreclosure purchase. 

Desperate Sellers

The one common thread that you will find when buying a home in the pre-foreclosure process is desperate sellers. As such desperate sellers, they will often accept any offer that you throw at them. This might be a great opportunity for you to get a short sale as well. If their lender is willing to take less than the money that is owed on the property, it can create instant equity for you. Desperate sellers usually mean a great source of deals for you.

Extra Paperwork

When you buy a house during the pre-foreclosure period, be ready to do some extra paperwork. If you are going to do a short sale, then the process becomes much more lengthy than a regular sale. In this case, it is very beneficial to use a good buyer's agent that specializes in pre-foreclosure sales. They can guide you through the process with minimal setbacks. 

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