Purchasing distressed properties during the pre-foreclosure phase of legal action is a great idea for real estate investors. During this time, you can work directly with the homeowner and this saves you a great deal of headaches, hassles, and legal red tape.
This is the only time during the foreclosure process that you can inspect the property freely, make an offer, and close the deal much like you would in a traditional real estate transaction. But unlike a traditional sale, buying pre-foreclosures allows you to purchase property significantly under value.
Once you have located a good property investment that is being foreclosed upon, you will need to contact the homeowner to begin negotiations. This is the toughest part of buying pre-foreclosures because emotions are very high at this point in the homeowner’s life.
Your first contact should be made delicately with the homeowner’s vulnerable position forefront in your mind. Keep in mind that he is likely besieged by phone calls from creditors and will likely view you with more than a little skepticism.
Since the homeowner is likely screening his calls, you might find it difficult to get in touch with him. You could start the buying pre-foreclosures process by contacting the homeowner by mail. Letters are less threatening, and if they are worded the right way may get you an appointment with the homeowner.
Follow these letter-writing guidelines for buying pre-foreclosures:
-
Make sure the envelope is nicely hand written so it looks personal and not like another bill collector. Letters that are too professional looking may also be a turn off. If you want the stressed-out homeowner to even open your letter, it must look non-threatening.
-
Word your letter in a friendly way that makes the homeowner feel like you are trying to help him. Outline exactly what you can do for the homeowner. When buying pre-foreclosures it is common for the investor to pay off the loan and give the homeowner a little cash to pay off some other bills.
-
Give the homeowner a way to contact you at his convenience. Never threaten or pressure. If your letters get no response, simply increase your efforts by sending more letters, but no more than two per month. A couple of phone calls might also do the trick, but only begin these as follow up to mail correspondence.
Once you have made contact with the homeowner, continue to be sensitive to the homeowner’s position. When buying pre-foreclosures you should never judge or treat the homeowner in a condescending manner.
A more effective strategy is to meet with the homeowner face-to-face. While this sounds daunting, it is by far the best way to close the most deals. Learn how to approach the homeowner during this time, and how to get them to work with you, and you will get far more deals.
About the Author: Chris Thomas is a real estate investor and author of the best selling ebook "Dominate Preforeclosures," which teaches you how to acquire property in pre-foreclosure with a successful, proven way to approach homeowners and get the deal. Learn the strategies that the top investors use daily, but refuse to share by visiting http://www.dominatepreforeclosures.com.
Filed under Uncategorized by on Jul 14th, 2009. Comment. 
Do you want (need?) to sell your home fast? Many people do, whether it is because of a job upset, a move, a need to size down - for whatever reason, selling fast is better that selling slow.
But the current state of our economy and the housing and mortgage market has many doomsayers saying it just can't be done.
But it can. Houses are being sold every day. The trick is simply to get your home at the top of the list and have it be one of those sold now, rather than 9 months from now.
How To Sell Your House In 21 Days Or Less! was written by a guy just like you. He was not an expert or a real estate investor. He needed to sell his home fast and did just that. Click on the video and take a few minutes to hear his story.
This is a must have tool if you are even thinking of selling your home now. Click the link now and discover How To Sell Your House In 21 Days Or Less!
Filed under Selling Your Home by on Jul 22nd, 2009. Comment.
I read he other day about Bush giving immunity to phone companies, they can spy on us but we can not sue them. "Que vaina," as I may say in my country.
In China hey do the same, and they say it is to protect the citizens, trash I would say. Also, fast food giants as McDonald's, Burger King, Wendy's, have what is known in congress as the "Burger Bill" where it is prohibited to sue this fast food company for the bad food they sell.
What the heck is next? Are you gonna let your govt tell you how to live?
Filed under Selling Your Home by on Jul 26th, 2009. 5 Comments.
If I buy a 1997 DW today for 40K cash, and sell it in five years, how much would I expect to get back? I figure even if it goes down by half, and I get 20K out of it, I've still gotten a good deal. Why? Because the way I figure it, if I break it down into a monthly expense, then over five years, 20K equals 4K a year, or about $330 per month. My lot rental would $600 per month. So that comes to $930 a month. That's cheaper than rent. Owning a similar home would cost me at least 1500 per month including PITI, and I wouldn't have any money left to put in the bank. If my house didn't appreciate, I'd be hosed.
So, anyway, I'd be curious to hear others' thoughts or experience concerning how fast I would expect my home to depreciate.
Filed under Selling Your Home by on Jul 27th, 2009. 2 Comments.