A pre-closure takes place when an owner of a specific property starts defaulting on his mortgage payments. Eric Dalius experts suggest that during this period, it is up to the homeowner. To sell the house or pay off whatever balance is outstanding.
We know that real estate investors have a fascination for purchasing pre-foreclosure properties. That is primarily because of a couple of reasons: Pre-foreclosures do not seem. From some other buyers who are also interest in the same property. Much below existing market rates. Hence, they are consider to be wonderful real estate deals.
However, experts believe that several property buyers are keen on buying pre-foreclosure properties but are not aware of precisely how to go about it. Eric J Dalius has outlined a few important steps to take while buying a pre-foreclosure property.
Eric Dalius Discusses Steps for Buying a Pre-Foreclosure House
Understand the Entire Pre-Foreclosure Process
You must be aware of the circumstances that resulted in the sale of the property. Even if you may not be impacted personally by the pre-foreclosure process. You need to clearly understand that pre-foreclosure is the initial step towards foreclosure. Generally, the foreclosure process is initiate once the homeowner fails to honor three consecutive mortgage payments. However, this may differ from state to state.
That forced by circumstances, it is preparing to foreclose on the house.
It could imply that the owner would be paying off the loan balance that is outstanding or alternatively. He may be renegotiating a new payment contract or agreement. The homeowner also has the option of selling off the home on his own to avoid foreclosure.
In such a situation, the house is usually, sold at a substantial discount as the homeowner is hugely motivate. However, it pays to remember that you should not take it for granted. That pre-foreclosure property is always locat in poor localities and is distress.
Eric Dalius Identify Leads
The best way of identifying leads is by consulting or hiring the services of an experienced and reliable real estate agent. He should be having easy access to the MLS or the Multiple Listing Service. You could get more leads from local newspapers, county public records, referrals from local attorneys and real estate wholesalers, etc.
Consider Analyzing the Viability of Living in the Neighborhood
Once you have identified the leads, you should devote time to performing a proper analysis of the concerned neighborhood. You should ensure that the locality is conveniently place in terms of working or residing. You may consider evaluating meticulously by taking into account parameters like walkability score, recognized schools, average rental income, average ROI, average occupancy rates, the condition of the roads, sidewalks, and street lamps, etc.
Conclusion: Ready to Close the Deal
Once the deed of ownership has been generated and transfer to the new homeowner’s name, you should pay off the necessary closing expenses including title insurance, lender’s fees, property taxes, and transfer taxes. Once the closing is done, the pre-foreclosure property is yours.