If you are interested in buying a house from a distressed owner in preforeclosure, the results would be beneficial to both distressed homeowner and the foreclosure investor. If you buy this preforeclosure house, you will benefit from being able to purchase a house with a value that is way under the market value, and it benefits the distressed owner since he will not lose his property to his lenders and have money in the process. Then you can sell, rent, or assign the contract to another investor for a profit.
Where do we find these preforeclosure properties then? Real estate leads can be found in three sources.
You can find what you need in our county clerk or recorder’s office. There are public records that show transactions between homeowner and their lenders. One a homeowner misses one payment, the lender will give him an official notice called the NOD or lis pendens. Depending on where you live, you can actually buy a list of these notices for a certain amount. These are just notices but it does not contain any contact information on the homeowners with preforclosure properties. If you are determine to find these properties then you have to be willing to spend time looking at all the documents available. Foreclosure leads can be found here but you will have to spend lots of time doing research.
A mortgage broker is another source of preforeclosure properties. You can be referred by the local mortgage broker as a free source to distressed homeowners. These distressed preforclosure homeowners are not able to pay their mortgage, and are not even able to arrange new payment terms. They can opt to sell their property to real estate investors for a fast sale.
Some of these homeowners are not really familiar with foreclosure processes and so they need honest counseling and guidance. You can help them get a fresh start by buying their house.
You can also find preforclosure homes in an online preforeclosure database. Leads on foreclosure properties are easy to find in this online database. You should look for a reliable online service. A list for preforclosrue properties should be found in the online foreclosure database. If you search for preforeclosure properties in some online sites, you will not find any results with preforeclosure properties. However, there are online foreclosure websites that actually list preforclosure all over the country, including the pay off, equity, attorney handling the case and many others. If you want fast, easy and accurate preforeclosure information, check out the online foreclosure database. It can generate 20 to 30 leads per month which can give you great properties to buy at way under market value.