Buying the house that is in the preforclosure status is something that will benefit both the distressed homeowner and the real property 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. You can also gain profit from this preforclosure home that you will buy if you assign the contract to another investor, or if you have it renovated and sole, or use it as a rental property.
Finding preforclosure properties are possible and can be done in many ways. Real estate leads can be found in three sources.
You can find what you need in our county clerk or recorder’s office. Transactions between homeowners and their lenders are usually listed in public records. One a homeowner misses one payment, the lender will give him an official notice called the NOD or lis pendens. This list of notices can be acquired by paying a certain amount depending on where you live. Your are not likely to get contact info on the homeowner so be prepared to do some research to track them down. 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. Foreclosure leads can be found here but you will have to spend lots of time doing research.
You can also ask for a list of preforeclosure properties form a mortgage broker. You can ask the local mortgage broker to refer you 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. Selling their homes fast is the only option left to them.
Some of these homeowners are not really familiar with foreclosure processes and so they need honest 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. Leads on foreclosure properties are easy to find in this online database. But you need to choose the right 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. 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.