Pre-Foreclosure Property
There is a secret going on in Bay Area real estate right now. Investors are buying pre-foreclosed homes for pennies on the dollar. These are not homes that have already fallen into foreclosure, they are homes that are at risk of going into foreclosure. A more accurate description would be homes that are in the last stage before the lending institution has to repossess them. Usually because the purchaser has failed to make the payments. At this stage of the game, the purchaser of the property is still able to make all the decisions about the property and they are still in a position to redeem the property.
In the Bay area there are several property owners who are falling into this category every week. The real estate situation is bad for some homeowners and they are on the verge of losing their homes to foreclosure. Many of these people are willing to make deals and do whatever it takes to save their credit. They can either try to refinance the home, get a loan to bring themselves current, or sell the home. In most cases, by the time they realize they need to do something it is too late and they are unable to get the needed financing in time.
This is an opportunity for you to step in and help them out. If they are willing to sell you their home, they may be able to save their credit rating. They could possibly even catch up on their past due payments to their lender. Since they are about to lose the home anyway, it is common to get these properties for just a little above what they owe on the home and in some cases even less. Since they are under the gun to sell their Bay Area real estate before the bank takes it back, they are more willing to take whatever offer they can get. You can see how getting these at extremely reduced prices can be done with little effort.
This creates a win win situation for everyone involved. The lender gets the balance of their money without having to foreclose and move the buyer out. The homeowner gets to get out from under a home they can't afford as well as save their credit. You get a piece of real estate in the beautiful bay area at a substantial discount.
There are many places to find pre-foreclosed real estate in the Bay Area. You can find some online. Some can be located by contacting the local banks. You may even find a few listed by the owners in the local papers. There is one method you can use to get a steady flow of pre-foreclosure properties with homeowners who are willing to sell. Put an ad in the paper offering to purchase these homes and the homeowners will come looking for you. There is no end to the number of Bay Area homes you can purchase this way because this is a relatively unknown method. Too many buyers wait for the foreclosure auction and battle it out there. You can get these homes for less and avoid the battle by purchasing them in pre-foreclosure.
