Pre-foreclosures - Why Real Estate Gurus Prefer Them

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Pre-foreclosures - Why Real Estate Gurus Prefer Them

Author: JuliaWilson Total views: 5 Word Count: 339

It's unfortunate but foreclosed homes currently represent half of all of all the homes sold in the US. Before the bank forces foreclosure there is in a period called pre-foreclosure which can last anywhere from two to twelve weeks. Many of the real estate gurus have made a fortune on pre-foreclosures and consider it as one of the best, if not the best, way to invest in real estate.

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 several reasons that real estate experts feel it's a better to purchase a home during the pre-foreclosure period instead of waiting to buy a foreclosed home at a government auction:

- Pre-foreclosed houses are often cheaper considering as it's being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.

- 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.

- Auctions can be a skill in itself and many people are not comfortable in that environment.

- You have time to have a pre-foreclosed home inspected resulting is less risk.

- All you'll need to buy a pre-foreclosed home is a down payment for as low as a few hundred dollars. At a government auction you would need more cash up front.

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.

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

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