PREFORECLOSURES

What is a Preforeclosure?

A preforeclosure property is in the foreclosure process, but the lender has not yet re-possessed it. Once a homeowner is in default of a loan, a countdown begins until the home is auctioned or re-possessed by the lender. Typically, this period lasts 90 to 120 days. If all of the past due payments are not paid off and if the homeowner does not get out of default in this period, then the home goes to auction.

Preforeclosure properties fall in two categories: Notice of Default and Notice of Sale.

The Notice of Default period typically begins about four months before the property is scheduled for sale. The Notice of Sale period typically begins four weeks before the sale of the property.

How is a Preforeclosure Different from a Foreclosure?

In a foreclosure, you get the property at an auction or through a REO from the lender. In a preforeclosure, you buy the property directly from the distressed homeowner, before the property goes to auction or is re-possessed.

What You Should Know Before Exploring a Preforeclosure

You may find bargains through a preforeclosure strategy. But, you can also find a lot of headaches. With a preforeclosure, you must contact the distressed homeowner directly. This effort can entail a great deal of psychological and emotional challenges. Distressed homeowners are under an extreme amount of pressure; they may not always be very friendly to strangers who want to buy their house. By the same token, if you have a strong, clear, and compelling communications strategy, you could be a welcomed relief to a distressed homeowner and discover a well-priced property.

If approached in an intelligent and well-planned manner, exploring preforeclosures may be an effective way to save thousands of dollars in a property purchase for savvy and inexperienced buyers alike.

For the preforeclosure market, CRN provides you with access to listings that may save you thousands of dollars. CRN’s proprietary database contains tens of thousands of property opportunities from various sources that could lead you to the purchase of your home. To explore these listings, please visit http://www.crnhome.com/ or call our friendly customer support representatives at 800-511-4236.