Help with buying a Pre-foreclosure?

Question

ok so I found a ton of Pre-foreclosures in my area, and need to know what is my next step to buy one. Should I contact the lender or bank, and ask if I can pay the homeowners Default amount and take over payments? Is it really that easy!
Please help

Answer 1

GET A REAL ESTATE AGENT !!!

YOU'RE GONNA NEED HELP WITH ALL THE LEGAL DOCUMENTS !!!

Answer 2

If it was that easy everybody would be doing it. If it is in pre-foreclosure your best bet would be to contact the owner and see if you can work out a deal to purchase the house from them. If yes you will need to hire a good attorney to write up a contract and get the deal and secure financing. That will be the hard part. If you are not successful with the owner you will have to follow the property to auction. If it doesn't sell there the bank will list with an agent and sell it.

Answer 3

No, they are right it isn't that easy. Do you just know of the location of the house or have you acquired data to all the information? Some online services can provide you with this information (foreclosure.com). Once you have found out who the owner is then write them a formal proposal/offer. Leave it in the mailbox or send it. Do not bypass them and go directly to the bank- they have not yet foreclosed and that would be insulting. Talk to them first. See if they plan on recouping and keeping the house.

Once you have found it out directly from the horse’s mouth then go to the bank and ask what your options are. Sometimes they will finance it directly- resulting in a lower purchase price- however this may occur after the auction.

Do your research outside of yahoo.answers

Answer 4

I agree with Tiana's answer.
You don't need a real estate agent, just contact the owner but it is not easy as it sounds. I've sent out tons of letters over the months and made calls to owners, most are not going to be willing to sell and the ones that are owe more then the house is worth. If they are not willing to make a deal with you before the auction, the only thing you can do is go to auction (if it really happens) and see if you can bid there.
MOST IMPORTANT - DO YOUR RESEARCH! If the judgement is on a second mortgage you will be stuck with the first mortgage.

I'd suggest starting to go to auctions and observe, talk to people. you can learn a lot that way.

Answer 5

Well, the problem I have run into with people under preforeclosure is they are in denial.....They don't want to even talk with you....

I don't deal with home owners, I go directly to the auctions and buy the homes there, but you will need cash in order to do that.....You can't deal with the bank, you can only deal with the owners....If you pay the back payments, and take over payments, most, if not all mortgages are NOT assumable, so that would not be a legal document, unless the bank ok'd it....

Your best bet, would be to get your financing in order, and buy the house from the owners in default....Best of luck

Answer 6

you are able to in basic terms purchase a product from the guy who owns it. even as the abode is in Pre foreclosures, it skill the non-public loan is overdue and the business corporation has began the for closure procedure. the owner nonetheless owns the abode and subsequently they have the right to promote the abode, presented they are able to searching a thanks to guard any liens adverse to the abode which incorporates the non-public loan. in a lot of circumstances, a Pre foreclosures deal will be a short sale the position the acquisition fee that you pay isn't adequate to pay off the present loan on the abode. In those situations you do ought to barter with the business corporation because you should cajole them to settle for a private loan pay-off of decrease than the completed volume. surely you should cajole them that they'll get more effective money by technique of accepting your short sale furnish than by technique of foreclosing on the abode and auctioning it off. in spite of the indisputable fact that, even although there are negotiations that contain the business corporation, you're nonetheless procuring from the property proprietor and that is the valuables owners who might want to confirm to settle on your furnish till now you are able to also communicate the words of a short sale with the business corporation. The economic corporation takes possession on the best of the foreclosures procedure. even as the business corporation legally owns the abode, the foreclosures procedure is done. At that aspect you are able to negotiate with the business corporation to purchase it.