It benefits both the distressed homeowners and the foreclosure investor if the investor buys his house. The biggest benefit of buying a house at preforeclosure stage is that you can prevent the owner from losing his property to his creditors and you will also acquire a very affordable property whose value is way under the market value. Then you can sell, rent, or assign the contract to another investor for a profit.
Where do we find these preforeclosure properties then? Here are 3 sources of real estate leads.
The first thing to do is to check out your 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. 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. There is a need to spend time in doing research since it is possible to find foreclosure leads.
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. Distressed homeowners try to get their loans modified or refinanced by the mortgage owner but they are unable to do so. 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 help them get a fresh start by buying 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. A list for preforclosrue properties should be found in the online foreclosure database. If you search for preforeclosure properties in some online sites, you will not find any results with preforeclosure properties. 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. 20 to 30 leads can be generated each month which gives you a list of properties to acquire that is way under market value.