A savvy real estate investor will always be looking for the most profitable housing deals on the market. The number one strategy to fetch the bait is by buying pre-foreclosure property. Therefore, in this circumstance Fresno realtor is about to introduce what does pre foreclosure mean.
What Does Pre Foreclosure Mean?
The answer of what is pre foreclosure namely as the stage where a homeowner is not able to complete their mortgage payment for three months or more. On the condition, the lender will file a notice of default (NOD) which is actually a reminder for the homeowner to cover their responsibility as soon as possible.
On the NOD, the lender will mention a certain amount of time for the homeowner to pay off their outstanding debts. They also have an option to sell their house to cover their debt and keep the rest of the money for their own.
How Long Does Pre-Foreclosure Take?
The length of pre foreclosure actually depends on the procedure of states. It depends on where the house is placed, it may last a few months or years.
7 Guide On How To Sell A House By Owner - Complete Guide
Pre Foreclosure vs Foreclosure
If you are still confused about what does pre foreclosure mean, it is actually very simple. Pre foreclosure describes the period before a house hits its foreclosure. If a house hits its foreclosure, the lender will have every right to take possession of the property.
Should You Buy a Pre Foreclosure Property?
What is pre foreclosure mean? Put on your mind that what does pre foreclosure mean is a land of provit if you make use of it wisely. Pre-foreclosure property is not necessarily put on the market for sale before it is officially foreclosure by the lenders.
Taking advantage may sound a bit harsh, but it is necessarily to do for your success in the real estate industry. Then, what does pre foreclosure mean for a real estate investor is an opportunity to make a real estate offer straight to the homeowner. The ‘need of money’ circumstance is able to bring you a bigger chance of getting a better deal before it is finally listed on the market.
Thinking about the discount you will be able to gain if you close the deal straight with the owner itself. You can also decrease the price if the house were in a very bad condition due to the maintenance of the property rehabilitation.
However, you need to be really careful because ‘what is pre foreclosure’ also means the owner has had a very bad financial situation lately. Do not FORGET to check the hidden liens and liabilities before closing a pre-foreclosure housing deal. Who knows, they haven’t paid their taxes and stuff for a couple years, right?
Where to Find a Pre Foreclosure Property?
You can only find it if you are lucky. However, you can always gather the information from real estate agents, country court offices, legal notices, online records, property market place, etc.
What does pre foreclosure mean for real estate investors is like winning a lottery, especially if the house is in a hot market and with a very decent condition. So, what does pre foreclosure mean for you?
If you need any real estate and housing advisor, feel free to contact us on Fresno real estate agent.
Linda Peltz, eXp Realty