Understanding pre foreclosure listings is important, especially if you are trying to capitalize on a declining home sale market and what to purchase an outstanding property at a lower than market value price. Pre foreclosure listings, also known as short sale listings, are available for free on many different sites on the internet as well as through private access sites. Keep in mind that all homes on pre foreclosure listings are not for sale, some owners will be able to negotiate with lenders, refinance, or may borrow against other collateral to make up their default payments, bringing the property out of foreclosure.

Pre foreclosure listings are also known as short sales, since the buyer is selling his or her property “short” of the total cost of the mortgage. For example, a home owner with a $200,000 home that is in pre foreclosure may owe $180,000 on the mortgage, but may be willing to sell the home for $160,000 to avoid having a foreclosure on their credit record. This means that the buyer will purchase a $200,000 home for $160, 000 or less, which is well worth the effort to find pre foreclosure listings and contact the owners.

Depending on the type of pre foreclosure listings that are provided by your agent or the website you select, you may be provided with more or less information. The free websites tend to offer the very basic information while the pay per use or subscription type websites can be highly detailed in the information they provide. This information may provide information such as:

Market value and equity information on the property
Comparable sales in the area both in foreclosures, pre foreclosures and traditional home sales
Property reports
Tax information on the property
Arial maps of the area as well as pictures of the property
Phone numbers and contact information for the home seller

Since there are more and more people that are investing in property using the pre foreclosure listings and services, the most up to date and current listings tend to provide the best returns for investors. When deciding if you want to subscribe to a particular pre foreclosure listing service, check to see if they offer a free trial offer that you can become familiar with navigating around the site and locating information in a simple fashion. Many sites are set up to email you the information or to send daily listings that meet your search criteria directly to your email or to your cell phone through a text message.

How To Understand Pre Foreclosure Listings is a post from: Foreclosure Guide

There are hundreds if not thousands of free pre foreclosure lists, so why bother to pay for pre foreclosure lists that provide the same information? Believe it or not it may actually save you money to pay to belong to a website that allows you to view pre foreclosure lists, rather than to use the free sites. The following reasons are the key factors in why paid pre foreclosure lists are ideally suited to serious investors.

Time IS Money

In the investment and real estate world this is absolutely true. The time that it takes to browse through the hundreds of thousands of pre foreclosure lists on the internet is time that you could be spending contacting home owners, surveying areas and neighborhoods and putting together offers and information. The more serious of an investor you are the more critical time is when you are juggling multiple deals at the same time. Using free pre foreclosure lists may be cost saving money wise, but if you factor in your hourly rate you will definitely be losing money each minute you spend at your computer looking through lists that might not have one property of interest to you.

Research and Tracking

While most of the free lists will provide information on the physical address of the property, many don’t include pictures, specific information on the property, comparable sales figures and even the homeowner and lender contact information. If you don’t have this information, you will again need to take your own time or more likely hire someone else to do this research for you.

The Early Bird Gets The Worm

When pre foreclosure properties are put on lists, there is a huge interest in the property generated by those using the lists. The faster that you can contact the homeowner and the lender the faster you can present the bid on the property for the sale. If you can directly access all the information that you need on the paid site, you are far ahead of the group of investors that is trying to save a few dollars by doing the research on their own.

Finding Just What You Want

The paid pre foreclosure lists all offer the option of notifying you when a property matching your search criteria is placed on the list. This can help you in saving both time and energy as you can really fine tune the search criteria based on price, age of the home, market value, location and other specific criteria.

Avoid Junk Mail

Free sites are paid for by advertisers; so you will have to provide some type of email address to access the site. Once you do that you are giving permission for advertisers to contact you in exchange for the use of the free listings. Paid sites don’t have this same need for income from advertisers, so you will typically avoid all the junk mail associated with using the free sites.

Why Pay For Pre Foreclosure Lists? is a post from: Foreclosure Guide

Although getting notice that your home is in pre foreclosure is very difficult both emotionally and financially for anyone, there are some options that homeowners in difficulty may be able to use. One such option could be one of the many pre foreclosure loans offered through various banks and lenders. Since banks and mortgage companies really don’t want to be stuck with foreclosed homes, pre foreclosure loans makes sense for the lender, plus it can be an effective option for the homeowner as well.

Not all homeowners will be eligible for pre foreclosure loans. From a lenders perspective the homeowner or borrower is only a good investment if he or she has a job and can reasonably afford the loan payment. The good news is that most pre foreclosure loans are fixed rate over 30 to 40 years, which means that even through they are slightly higher in interest rate than a conventional home loan they are stretched out over a much longer period, decreasing the actual monthly cost to the borrower for repayment. Of course this means that the borrower is paying a significantly higher amount in interest over time but early repayment may also be an option.

Pre foreclosure loans, like any type of loan, cannot exceed the appraised value of the property. This will allow lenders to consider the equity that the homeowner may have build up in the property as well as changes in the real estate market. Even though real estate goes through high and low fluctuations, in general real estate values increase over time, so homeowners that have been paying into a home for more than 5-7 years have already built up some equity unless they were on an interest only loan payment. In cases where the buyer actually has negative equity or owes more than the home is worth on the market, pre foreclosure loans are not always an option.

Taking out a pre foreclosure loan also protects the homeowner’s credit score and rating, meaning that he or she can use that number in obtaining the loan. If the homeowner waits until the home goes into foreclosure and tries to borrow for a second home or property, they will likely be denied a loan or have to provide a huge downpayment or pay the highest in interest rates.

The first place to start when looking for pre foreclosure loans is with your current lender. Many people assume that they have to start somewhere else, but keep in mind if your lender understands the hardships that caused your default payments and knows that the situation has been corrected, they are more likely to work with you as you have a history with them. If you lender doesn’t offer pre foreclosure loans, ask for referrals to a lender that does.

Pre Foreclosure Loans For Homeowners is a post from: Foreclosure Guide

When you have entered the world of real estate investment, either as a full or part time job or opportunity, it is important to have a series of pre foreclosure scripts. Telephone talk outlines and checklists are essential both when you are talking to the homeowner as well as when you are talking to the bank or lender and discussing or negotiating a short sale. These pre foreclosure scripts, telephone talk outlines or checklists should be developed well in advance and reviewed to ensure that you have included everything that you need to cover in the phone conversation. Nothing will irritate either a homeowner or a lender more than having repeated calls from the same investor to keep filling in information missed when there are no pre foreclosure scripts. Telephone talk outlines can be found on the internet or in investment courses, however they can also be developed with a bit of thought and consideration.

To develop your own personalized pre foreclosure scripts, telephone talk outlines or phone checklists consider the following key elements:

Include a space for the property physical address and location, the name of the current homeowner and the name of the lending company

Keep a space or blank line where you can write in the loan or foreclosure officers name and direct line phone number. This will help you be able to call them back and address them by name during the conversation.

Provide a short two to three sentence blurb about yourself and your experience as an investor. Banks and lenders do want to know who they are dealing with and what their current level of knowledge is about the process.

If you have dealt with a loans officer from the particular lender before, be sure to mention this in your introduction or script. A great idea is to leave blanks in the script, print it out and fill in the blanks with the relevant information before and during the call.

Provide the information that you may already have on the home including the owners hardship situation, the property’s market value and the price at which you are willing to start negotiations.

Include a list of questions you may wish to address directly to the lender regarding the short sale process or the documentation required to start the short sale.

Practice your pre foreclosure scripts, telephone talk outlines and checklists to make sure they sound natural and not like you are reading off a page. Keep in mind that you need to be flexible and respond to the person on the other end of the line, not just follow along with the script if they are asking questions or providing further information.

Pre Foreclosure Scripts : Telephone Talk For Investors is a post from: Foreclosure Guide

When potential buyers are interested in a home that has been listed as a pre foreclosure send postcard should be their first thought. Although it may seem impersonal or like a bulk mail out, for a buyer looking a home in pre foreclosure, send postcard, send letter or make a phone call are really the best options rather than an in person visit. While making an in person visit is still a good option, it also may be very intrusive to the homeowner, plus it requires that you travel to the home and simply take the chance of actually finding the owners at home, which can be challenging, especially if you live in a different city or area.

From a listing service, determine which homes are in the area that you are interested in and are currently in pre foreclosure. Send postcards to the homeowners, but try to address the card directly to the current owner, not just with a generic greeting such as “Dear Homeowner”. This little personalization will ensure that the homeowner understands that you have at least taken the effort to look up their name and are not simply mailing out to everyone in the neighborhood or area.

The sample for a pre foreclosure send postcard template can be found on many different real estate investment sites, but typically the format of the postcard will be similar to the example provided below. The general format of the postcard should include:

A sentence to the homeowner explaining why you are contacting them regarding the purchase of their home.
An interest in working with the homeowner to avoid foreclosure and the negative affect it will have on their credit score.
Contact information for you such as an email, business or personal phone number or cell phone number.
Information about you are you a sales agent or marketing company, a listing service or in interested potential private buyer.

The format for the pre foreclosure postcard should not look exactly the same as what other companies or interested buyers are offering. The more personalized and supportive the postcard is, the more likely the homeowner will be to take the time to call you or make contact. For a property you are interested in that is in pre foreclosure, send postcard first, then follow up with either a longer letter or a phone call about a week to two weeks after the original postcard has been sent. If the homeowner is not interested in discussing a possible sale at this time, ask if you can call back in a month, which will give them time to work with the lender and make the decision to short sell the house or refinance.

Interested In A Pre Foreclosure: Send Postcard is a post from: Foreclosure Guide

No homeowner plans to go into pre foreclosure through default on their home loan repayments. Unfortunately many homeowners find themselves in this very situation each and every day. With worsening conditions in the economy more and more homeowners, especially those with the so called “jumbo loans” or those with variable rate ARM (adjustable rate mortgage) loans are particularly at risk for going into pre foreclosure. The good news is that there is a pre foreclosure solution that can work for many homeowners, but it does require being proactive and acknowledging the problem as soon as possible.

The first step for a homeowner to come to a pre foreclosure solution that will work for both themselves and the lender is to eliminate all other debt as quickly as possible. This may mean taking out a long-term fixed rate consolidation loan on all credit cards or car notes and other debts before falling behind on the house payment. Most homeowners simply ignore the warning signs of mounting debt, seeming to hope they can somehow borrow their way out. This never works, and even a consolidation loan will only work if you are also eliminating all expenses and luxuries out of your life and living as much as possible without using credit. This means getting rid of those extras such as cell phone plans that are above the basic, eliminating luxuries such a broadband internet, satellite television or expensive plans on your home phone. Most families can save hundreds of dollars per month just by cutting out those four expenses in the house. Using this pre foreclosure solution of living well within your means helps your lender understand that you are serious and proactively working to get back on your financial path.

The second step in a mutually agreeable pre foreclosure solution is to prove to the lender that you have the income you need to make the payments if they either modify your mortgage or refinance. This means someone in the household may need to take on an additional part time job to add to the total monthly income. Most lenders are not going to be able to work with a homeowner that has no increase in income and decrease in spending since there is no mathematical way to justify a loan or a mortgage modification.

The third step is to prepare a hardship letter for your lender, which will outline the problems in your financial history and how you have resolved these issues. A big consideration that many lenders look for is a pre foreclosure solution that includes using a reputable credit counseling service to assist families in getting back on track financially.

The Ideal Pre Foreclosure Solution is a post from: Foreclosure Guide

Investors and buyers that are experienced in buying houses and properties on short sales all have a wide variety of pre foreclosure telephone tips that they use to get the homeowner’s attention and get them interesting in working with the investor. If you don’t use the pre foreclosure telephone tips you may still find a homeowner that wants to sell to you, but using these tips will greatly increase your chances.

The key to keep in mind when using the pre foreclosure telephone tips provided below is to be genuine and considerate of the difficult situation that the homeowner is currently in. Tone of voice and ability to relate to the owner is almost as important as the words that you use, and this is one of the most critical of the pre foreclosure telephone tips provided by successful investors.

Other equally important pre foreclosure telephone tips include:

Avoid calling homeowners at specific times such as during meals, immediately after work when people are trying to relax, early in the morning when families are all busy getting off to school and work or late in the evenings. Consider the best time to be between 7-9 pm or in the afternoons on the weekends or holidays.

If you get an answering machine leave a message, don’t just hang up. Most people will have caller ID and will assume you are either a salesperson or some type of debt call, so just plan to leave a simple message that includes who you are, what you want to talk about and how the owner can contact you.

If you are calling the bank or lender be sure to have a detailed plan of how you wish to handle the short sale and what you are prepared to offer. Be sure you know what points you want to go over with the bank official, pre foreclosure or mortgage officer and be prepared to ask for a face to face meeting to work out the details.

Be open and honest with the homeowner. If you are an investor, detail your experience in helping out homeowners in buying their homes while in foreclosure. If the homeowner knows you have experience, they will likely be more comfortable with the process.

Always leave the homeowner with contact information. This helps the homeowner feel comfortable that they are working with a real person, not some heartless and distance investment company.

You may not want to start out the discussion with the price you want to pay for the home. Finding out about the owner’s anticipated or desired price, getting an opportunity to see the interior of the house and find out the particulars of the owner’s financial position are all important before providing a number.

Following a few simple pre foreclosure telephone tips from investors can make your cold call list much less challenging plus you will find out you are able to communicate and connect better with homeowners.

Pre Foreclosure Telephone Tips From The Pros is a post from: Foreclosure Guide

It is always devastating to families and individuals when they are in default of their mortgage payments and face the possibility of being forced out of their homes. Thankfully there are several refinance pre foreclosure options that are available for homeowners, depending on their financial standing, credit history and record and the circumstances that led to the home or property mortgage not being paid. Refinance pre foreclosure methods will also differ slightly from state to state, so always do some research and learn about what your state offers and requires. This will help you discuss refinance pre foreclosure options with your lender from a knowledgeable and informed perspective.

The first step in obtaining information on how to refinance pre foreclosure property if you are home owner is to talk to someone that is knowledgeable about both your options and your legal rights. A HUD housing counseling agency can be a good first step, as these counselors can provide information on various government programs that may be available in your area. To access these services check your local government website or contact your Veterans Affairs department if you are current or past military and purchased your home with a Veteran’s Administration (VA) guaranteed loan.

Refinance pre foreclosure options may also include an actual modification in your mortgage payment, without the requirement of a full refinance. This can be arranged between the lender and the borrower and typically occurs due to some specific issue such as a loss of income, disability or a change in your income that will not allow you to pay the amount you were previously able to cover. Clear information to the lender as well as a prior good payment history before the pre foreclosure is usually critical in this special situation.

A partial claim refinance pre foreclosure deal can be a true lifesaver for both the borrower and the lender. In this option there are several criteria that may be met, but what actually happens in the lender is able to claim the deficit amount through a no-interest loan directly from HUD (United States Department of Housing and Urban Development). This can only happen if the house or property in not currently in foreclosure but is in default between four and twelve months and the homeowner is able to now make full mortgage payments to the lender at the terms of the original loan.

Typically home owners in looking for refinance pre foreclosure options may also be able to work through banks or lenders if they have a significant amount of equity built up in the home. In cases where the homes have no equity or negative equity, options will be very limited. Negative equity occurs when there is more owed on the home than the property would bring in if placed on the market.

Refinance Pre Foreclosure Options For Owners is a post from: Foreclosure Guide

With the dramatic decrease in the housing and real estate market properties all over the country are taking a direct hit. In many cases people are looking for options to refinance pre foreclosure Virginia and all over the United States as well as in Canada and even in countries outside of North America. Since there are several different options for property refinance pre foreclosure, Virginia options will be very similar to options in other states. Knowing your options and what you can reasonably consider will help in making the right decision.

The last option for any homeowner is to allow their property to go into foreclosure. Not only does this ruin your your credit score, but it can also impact on all areas of your life where your credit score is used. This can include your insurance premiums, your ability to rent or own property as well as even in some employment situations. In addition if you default on a loan and your property goes into foreclosure, it may be very difficult to ever find a lender that will work with you on a home purchase for a workable interest rate for many years into the future. Refinance pre foreclosure, Virginia State or elsewhere, is something that needs to be started as soon as possible to prevent foreclosure.

There are actually several options that many owners may have for going through the process to refinance pre foreclosure. Virginia homeowners may find that they are really struggling to make payments, or may have already missed payments or only provided partial payments. As soon as this happens, contact your lender and try to work out a reduced payment or a partial claim loan, which will allow you to borrow funds at no interest through the Department of Housing and Urban Development. The lender is then satisfied and you have a no-interest loan that allows you to stay in your home.

As another option to refinance pre foreclosure, Virginia lenders may also be willing to consider a full loan refinance if the homeowner has built up equity in the home or the value of the property has dramatically increased since the purchase. Even in this declining home market there are some areas of property value increase and some types of home are still doing very well on the market. In these cases the equity in the home can be converted into a line of credit or a home equity loan, helping with the refinancing and loan payment.

Home owners with no equity or those that are upside down in their home, where the market value of the property is less than the mortgage amount, have very few refinancing options. Going directly to the lender and attempting to negotiate a decreased loan payment or extending the loan may be an option in some cases, but consider getting legal representation when entering into these negotiations to avoid paying huge refinancing costs and other fees.

Options For Refinance Pre Foreclosure Virginia State is a post from: Foreclosure Guide

There are a lot of pre foreclosure houses available on the market, many that have excellent investment potential. However, like with any investment, there are some risks associated with purchasing pre foreclosure houses. By knowing what to look out for and what to avoid, investors can reduce the risk of having what looks like a great investment turn into a liability.

The key concepts to keep in mind when buying pre foreclosure houses and properties include:

Location no matter how good of a deal you may get on pre foreclosure houses or properties, if they are in remote areas or in neighborhoods that are traditionally hard to sell, they are not really a bargain. If you can afford to hold on to the property for a longer period of time and have reason to expect the area will transition into a desirable neighborhood due to new expansions, subdivisions, shopping centers or other attractions location is not as critical. In some cases the pre foreclosure properties are located in other high pre foreclosure areas, which means the area will be saturated with investors trying to sell homes they have purchased. This will make resale options less and will also decrease the profit you will make on the property.

Condition some pre foreclosure houses will be maintained in excellent condition, but generally expect some type of repairs. Since the homeowners have been financially strapped, they are less likely to have painted, upgraded or added to the value of the property, especially if they knew they were heading for a foreclosure. In some cases the owners may have actually contributed to the poor condition of the house, although this is relatively rare.

Back taxes in some cases pre foreclosed houses and properties will also have large amounts of back taxes that need to be cleared up in conjunction with the transfer of the title. This can add thousands of dollars to the cost of the property, so make sure you are aware of any taxes owing or other liens against the property.

Upgrades if you are considering pre foreclosure properties that are older homes, they will need to be upgraded before they can be put on the market as rentals or properties for sale. Often rental properties are only upgraded with new paint and carpet, but a house for sale may need the fixtures changed, flooring upgraded, windows and roof replaced and even the kitchen or bathrooms remodeled. If you can do some or all of the work yourself this can save costs, however it will still take time and money.

If you are new to buying pre foreclosed houses, consider taking a weekend course or completing an online program to help you become aware of both the benefits and the risk to this type of investment.

What To Watch Out For In Pre Foreclosure Houses is a post from: Foreclosure Guide