We have discussed the benefits of purchasing commercial and residential foreclosures in South Florida on this blog before. Today, we will discuss pre foreclosures and how they may be a good option for both commercial and residential buyers.
What is a Pre Foreclosure?
A pre foreclosure is a property that is near the end of the foreclosure process and is only steps away from being taken by the lender. Until the process is complete, the property owner can continue to reside in the home and make other decisions regarding the home as it remains in their possession.
In most situations, if a property owner is willing and able to bring their mortgage arrearage current prior to completion of the foreclosure process, the lender is more than happy to cease the proceedings and allow the owner an opportunity to keep their property. However, there are situations where the owner cannot afford to keep the property and must sell quickly.
How to Find Pre Foreclosure Properties
You can begin your search for pre foreclosures in the same places you would look for foreclosed properties. Check the local newspaper, the Internet and contact the mortgage lenders directly. When you compare foreclosed properties with pre foreclosed properties, you may find that there is less competition involved with pre foreclosures.
Need help navigating the real estate purchase process? Contact the real estate lawyers at Schecter Law.
[...] Pre-Foreclosure: During this period, the property owner is behind on mortgage loan payments but no legal action has been taken to start the foreclosure process. At this time, the property owner is more inclined to consider offers to avoid foreclosure and save their credit rating. Notice of Default: This is the first step that initiates the foreclosure process. [...]