PRE FORECLOSURE and the Investor
March 7th, 2010
With the economy in Phoenix, Arizona in a tail spin, foreclosure of houses in every town in America is on the rise. However, before foreclosure ever happens, the home owner will find themselves in pre foreclosure. Many foreclosures are due to financial problems that came about from unemployment or the struggling economy in Phoenix, AZ. So, the pre foreclosure period is a great time for home owners to do something about their situation. Pre foreclosure is also a great opportunity for investors to find a great deal on homes that others can not afford. Finding a pre foreclosure property can be a lot easier now days. Because home owners that are struggling have started using the short sale process to avoid foreclosure, investors should seek out people that are in pre foreclosure and using the short sale process to get away from their mortgage.
The internet is a great source to find more information on pre foreclosure properties and on short selling your home if you are a property owner in pre foreclosure. Looking for a real estate agent that handles pre foreclosure sales for people looking to short sell their property is a great place to start. Banks are also actively pursuing people to buy homes in pre foreclosure so that they can avoid having to take over a house that they foreclose on. They do not want to be in the housing business. They only want their money. So a home in pre foreclosure can often be stumbled on to at a bank website or other places. The government also keeps close tabs on people that are in pre foreclosure, so checking out a government website could be beneficial to you.
You cold also check at the county clerk office for a list of homes in pre foreclosure. Sometimes those records are available.
During pre foreclosure, many home owners will be looking to short sell their property. Why? Because it gives them the opportunity to satisfy their mortgage debt and walk away with not much damage to their credit. The pre foreclosure process can take a while, so short selling works well during pre foreclosure. Also, the lender, as we stated above, doesn’t want to foreclose on the home because they will not get very much money for, let’s say, a $200,000 home, if they have to sell it at a foreclosure auction. So, the bank will often approve of a home owner short selling the home during the pre foreclosure process. They are so much in support of this that they will often allow the home owner to be free of the debt that remains on the mortgage after the home is sold during pre foreclosure. This is a huge benefit to the home owner, to the bank, and to any investor seeking a property that is in good condition and selling for a low price.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.