is ist safe to buy a Pre-Foreclosure

[Dimoxi]

property? I see several impressing commercials online, showing very interesting opportunities for buying big houses with low price. They are all classify under the "Pre-Foreclosure" category. I wonder if there is any hidden cost, commercial tricks or financial maneuver? is ist safe to buy these Pre-Foreclosure properties? Do I really own that house after purchasing, and can move inside?

[godged]

The fine print is that these houses aren't for sale yet, the bank doesn't have them, the sheriff doesn't have them, they are pre-foreclosure. The lender has started the process, but there owner has time to make the loan current. And then there is a redemption period where the lendee can make the the loan current, and you are out.

Foreclosures can be tricky, find out all you can before you commit to buying one in your area.

[shiprepairwoman]

Far from safe or easy. They are talking only the tax lien nobody is going to give up a paid off house for a few hundred dollars. They will find a way even if they starve. You don't know how many liens and what the condition of the homes are. Very easy to lose your shirt.

[Todd B]

For the most part yes, however, I would work with an expirienced agent and loan officer on pre forclosures, some things can get tricky. I have seen alot of average joes' jump in head first and get hosed.

[mike d]

The thing to be careful of is when you buy a froeclosed house it is "as is". You need to really check out the home. I would suggest spending the $100-$150 to have a professional give you their opinion. If you go to an auction there is typically a buyers premium up to 10% of the bid price. Do you r due dilligence call a title company and ask them to run a property profile for you on the property including recorded deeds etc. this will tell you quite a bit on the home, like sq. footage, debt on the home, when foreclosure notice was filed, if their are any liens on the property etc. Also, ask them to include comparables and send those to you as well.

[877YouKeep]

I think you guys are missing the point. The question is pre foreclosure. I also wanted to make a point about the statement on Redemption. Not all states have a redemption period as a matter of fact only about 15-20 % do. If a home has been foreclosured on and it is in a state with a redemption period there are no workout options. The lona can not be reinstated nor can there be anytype of a workout. The foreclosing company must have their note taken out replaced with a new note or cash.
Back to Pre Foreclosures - yes you are right they do not belong to the bank but you can work a deal with a homeowner get a contract and possiblly buy the property for less than what is owed. Please post if you have foreclosure question or pre foreclosure.

[Corey1023]

The question is overly broad. Is it safe to buy pre foreclosures? Yeah sure it is depending on a whole host of variables. Each house varies, each state varies. You need to really get your feet wet first, perhaps under a mentor. You wont make as much money under them, but to be honest ive always believed that you pay for any education you receive.

However i picked up on something you said in your post about buying big houses for a low price. Where are you looking? What site? what is the offer? The question is too vague to really do it justice with an answer. Please clarify further if you can what exactly you are looking at buying, where it is, where you saw it etc. The more specific you can be, the better chance one of us can help you.


Corey Vandenberg
Utah Foreclosure Advocates
801-645-6466