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. 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. Here are 3 sources of real estate leads.
You can find what you need in our county clerk or recorder’s office. Public records list down transactions between homeowners and their lenders. One a homeowner misses one payment, the lender will give him an official notice called the NOD or lis pendens. Depending on where you live, you can actually buy a list of these notices for a certain amount. These are just notices but it does not contain any contact information on the homeowners with preforclosure properties. 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. Let the mortgage broker refer you to preforeclosure homeowners as a free source. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. They can opt to sell their property to real estate investors for a fast sale.
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. The online service that you will use should be a reliable one. A list for preforclosrue properties should be found in the online foreclosure database. 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. The reliable online foreclosure data base is complete with a list of preforeclosures all over the country, including the pay off, equity, attorney handling the case, and other information. You can find this online foreclosure system fast, easy an accurate. It can generate 20 to 30 leads per month which can give you great properties to buy at way under market value.