When a home owner starts to have financial difficulties, the owners will usually start to get behind on their unsecured (credit card) debt. There are a multitude of reasons why people get behind. Job loss, medical problems, marital problems, etc. They let their credit cards go delinquent first but usually try to keep up on the house payment. When they get in further distress, they start to get behind on the house payment. They may put the home on the market and, hopefully it will sell. This is called a “distressed sale,” the seller is in trouble. Once the owner gets two to three months behind on payments, they now enter into the “pre-foreclosure” stage. You may be able to get a great deal on the home, save the seller from losing the home and even put some money in their pocket. This is a viable time to help them if they have sufficient equity. This is the time before they have been served a foreclosure notice from their bank but are not making the payments. However, financial troubles can lead to the “deer-in-the-headlights look” for the distressed seller and they can find it hard to make decisions. This is the time when many owners will approach their mortgage company and discuss options. Of course, the mortgage company prefers that the owner just get caught up on payments or pay them off. If the owner can’t get caught up, they may discuss a “short sale.”
SECRET REVEALED: A pre-foreclosure purchase can be a win-win for all involved.
As Excerpted From "Home Buying Secrets Revealed" By Kenn Renner, Copyright 2010 "All Rights Reserved" www.BuyHomeBuyingSecrets.Com - 512-423-5626 - www.BuyAustin.Com
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