Buying the house that is in the preforclosure status is something that will benefit both the distressed homeowner and the real property investor. Buying a preforclosure property will make you acquire it at a very low price and it also benefits the distressed owner since he will not lose everything and will receive money from the payment of his property. After buying you can renovate and sell it, have it rented, or assign the contract to another inventor for a profit.
So how do we find preforeclosure properties to invest in. Below are the ways to find preforeclosure proeprteis.
The first thing to do is to check out your county clerk or recorder’s office. Public records list down transactions between homeowners and their lenders. The NOD or lis pendens is an official notice filed by the lender against the homeowner if he fails to pay even a single month. This list of notices can be acquired by paying a certain amount depending on where you live. These are just notices but it does not contain any contact information on the homeowners with preforclosure properties. And since there are a lot of documents to check out, you should be ready to spend some amount of time to check them out. The foreclosure leads are found here but you need to spend time on research.
If you go to a mortgage broker, he will be able to provide you with a list of preforeclosure properties. You can be referred by the local mortgage broker as a free source to distressed homeowners. Most of the owners who are with preforeclosure status usually are not able to pay their mortgage, and they try to get their loans modified or refinanced from their mortgage broker, but they re unable to arrange new payment terms. They can opt to sell their property to real estate investors for a fast sale.
Some of these homeowners are not really familiar with foreclosure processes and so they need honest counseling and guidance. You can help them get a fresh start by buying their house.
You can also find preforclosure homes in an online preforeclosure database. If you search this online data base you will be able to fin lead of preforeclosure properties. You should look for a reliable online service. An online foreclosure database should list preforclosure properties. Make sure you go to a reliable site because there are many who say they provide preforeclaosure properties but you will have no results when you search for one in their site. The reliable online foreclosure data base is complete with a list of preforeclosures all over the country, including the pay off, equity, attorney handling the case, and other information. The online foreclosure system is fast, easy and accurate. This site generates 20 to 30 leads per month which gives you a lot of choices for preforeclosure properties to buy that is way under market value.