Pre-foreclosure Versus Foreclosures - Pros of the 'Pre'

By Clifford Carr

Due to the recent real estate collapse, many people across the United States are losing their homes to foreclosure. The period of time before the official foreclosure is called pre-foreclosure. Depending on the state the pre-foreclosure period lasts from seven days to a 60 days. Real estate experts know that the pre-foreclosure period is a great time to purchase a home.

A lot of times the banks don't want to deal with having to foreclose a home, so they will allow the owners to sell it during the pre-foreclosure period. You can get a great bargain in buying a pre-foreclosed home.

Here are many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an auction:

- A pre-foreclosed home could actually be cheaper because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.

- You will have the opportunity to ask the home owner questions concerning the home.

- Typically less competition then at a foreclosure auction. Foreclosures attracts more of the mass real estate market then pre-foreclosures do.

- The situation allows for more time to evaluate your finances.

- Many people can become more emotionally driven during bidding and pay more then they had intended to.

- You can bring an inspector along with you to inspect a pre-foreclosed home.

- You will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.

Make sure you bring along an inspector when you check out a pre-foreclosed home. You should also check to make sure there are no past judgement liens or unpaid taxes on the property. The risks in buying a pre-foreclosed home are not that much more then buying a home the traditional way through a real estate company. - 23208

About the Author:

Read descriptions on the top pre-foreclosure sites to understand what they have to offer at government auctions review or go direct to pre-foreclosures