A penny saved is a penny earned.
Well, by saving, you are actually earning. Thus, buying pre-foreclosure is absolutely a great way to earn. Why? Letting you to save up to 40% of the market value of a pre-foreclosure house, buying pre-foreclosure is very profitable. However, fortune doesn't come that easy. You have homeworks to do if you want to earn. You will need info on pre-foreclosure to further decide your strategy in buying pre-foreclosure. Let's get into the advantages of buying preforeclosure now.
Talking on its advantages, the sale agreements of buying pre-foreclosure could be flexible and adjustable. For the agreement only involves 2 parties ¨C buyers (us) and the home owner. Thus, as long as the pre-foreclosure homeowner agrees, the agreement is always negotiable. You will only need your home loan prepared to finish the deal. It's easy and not much red tape nor documentation works.
Secondly, buying pre-foreclosure could save you up to 40% of market value of the foreclosure home. It means if a foreclosure home¡¯s market value is 250,000USD, you could save up to 100,000USD. This's because a pre-foreclosure is usually sold for its loan balance but not its market price. Pre-foreclosure is really a good deal. Sure your neighbors will envy you for you owning the same house with them but with the different price they are paying.
Thirdly, buying pre-foreclosure straight from homeowner as compared to buying foreclosure home through auction or REO (Real Estate Owned) allows you to have adequate time to research on the conditions of the foreclosure home. As stated above, the agreement involves only you and the homeowner, you can always have a look on the title and other details of the foreclosure home as long as the homeowner gives a green light, can¡¯t you?
For most of the cases, buying pre-foreclosure needs lesser down payment and this make the fourth advantage of buying pre-foreclosure. As long you got your lender, everything should be going smooth. Thus, you should first make sure your financial status before going into buying pre-foreclosure deals. You can always easily get assistant from loan providers online. Try pre-qualification in LoanHounds.com here
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Of cause, buying pre-foreclosure have not only these 4 advantages, but they are the major one. Having so many advantages in buying pre-foreclosure, does it mean buying pre-foreclosure is easy? I doubt it. Great bargains always need efforts and good things don¡¯t easily have you unless, you planned your strategy properly in buying pre-foreclosure.