If you are interested in buying a house from a distressed owner in preforeclosure, the results would be beneficial to both distressed homeowner and the foreclosure investor. If you buy this preforeclosure house, you will benefit from being able to purchase a house with a value that is way under the market value, and it benefits the distressed owner since he will not lose his property to his lenders and have money in the process. After buying you can renovate and sell it, have it rented, or assign the contract to another inventor for a profit.
Where do we find these preforeclosure properties then? Real estate leads can be found in three sources.
The first thing to do is to check out your county clerk or recorder’s office. There are public records that show transactions between homeowner and their lenders. The official notice filed against the homeowner by the lender after they miss even a single payment is called NOD or lis pendens. Depending on where you live, you can actually buy a list of these notices for a certain amount. Your are not likely to get contact info on the homeowner so be prepared to do some research to track them down. You need to be ready to spend some time since there are a lot of documents to check out. Foreclosure leads can be found here but you will have to spend lots of time doing research.
If you go to a mortgage broker, he will be able to provide you with a list of preforeclosure properties. You can ask the local mortgage broker to refer you as a free source to distressed homeowners. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. Selling their homes fast is the only option left to them.
Many homeowners do not really understand foreclosure processes and this is why they need counseling and guidance. You can give the owner a fresh start by offering to purchase their house.
Another source of preforeclosure home leas in an online foreclosure database. If you use an online foreclosure database, you can easily get leads on preforeclosure properties. You should look for a reliable online service. Choose an online foreclosure database that lists preforeclosure 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. However, there are online foreclosure websites that actually list preforclosure all over the country, including the pay off, equity, attorney handling the case and many others. If you want fast, easy and accurate preforeclosure information, check out the online foreclosure database. 20 to 30 leads can be generated each month which gives you a list of properties to acquire that is way under market value.