I regularly get emails from prospects and clients about great foreclosure deals they would like me to help them with (you can easily find listings like that on sites like Zillow and RealtyTrac.) Often, the list prices quoted are fantastic and at a significant discount from comparable homes. After all, if a home is listed as a foreclosure to be sold at auction asking for $200,000 and the market price for a comparable home is $400,000, who wouldn’t want the cheaper one?
More often than not those great foreclosure deals are actual preforclosures. A preforeclosure is a home where the bank has initiated foreclosure proceedings. The actual foreclosure will happen if the owner is unable or unwilling to pay what is owed the bank. If a home goes through all the way to foreclosure (they often do not for various reasons) it will be auctioned off at the county courthouse steps.
In many cases the preforeclosure is taken back or purchased by the primary lender and then put back on the market with a Realtor at a later point. The banks will typically (…)