Pre-Foreclosure Purchase ?

[kjowers]

My first post here and Im already asking for help/advice, lol
I have been doing some reading :SM110: here and other places in regards to foreclosure purchases and have a couple of questions.
Let me fill you in on my situation.
I presently have 2 rental properties one aquired through a contractors lein we had on the property and the other was a house bought after a fire (cheap) I renovated. Both of these are paid for and are generating income. My goal is to continue to invest/purchase properties for the purpose of rental and suplimental income for when I retire.

I have been watching the notices at the county courthouse about forclosure auctions and have attended a few. However the properties seem to run more than what I would want to give.(Im assuming the best deals have already been made by auction the date) I have found a website that list non-judicial forclosure auctions that they handle in this area. The site does not list much information about the property hovever it does list the owners name, lenders name, time/date of sale, and an "estimated" bid amount. The contact information listed just shows the name and phone number of the attorney's that is handling the sale. When calling them All I can get from them is a recording stating that they have no legal interest in the properties and they have no other information other than what is listed on thier website. I have noticed a lot of the auctions they list at the courthouse eventually get cancelled and postponed a lot. This makes me think the properties have been sold "pre-foreclosure" somehow.
There is one or two properties listed on this site that based on the "estimated bid amount" I would be very interested in trying to purchase.
Ok now my questions
1. Can I go after these properties before the auction?
2. Who would I need to contact, Owner or Lender?

[Dan Auito]

Just a quickie from me, yes you can try to get ahead of the auction by contacting the current owner and getting them to sign a permission letter written to the lender that allows you to speak to the lender concerning ALL the details of the pending foreclosure, amounts owed, arrears, penalties, fees and so forth.
Randy at www.purpose.4t.com has an excellent short sale course that gives you a lot of techniques to proceed here!

Others feel free to elaborate if you can add to this further. :SM029:

[kjowers]

Any advice on the best way to approach the owner?
Phone call
Letter
knock on the door

Also any advice on a lead in for the conversation? I am new at this but I know I cant just walk up and say "Your about to loose your house and I want to give you a little money so I can make a lot of money off your property"

[Just Information]

You can always seek after pending foreclosure properties prior to auction but you will have to deal with the property owner as they only have rights to sell the subject property prior to auction sale.

The advantages to buying pre-foreclosures from homeowners in default can only be measured by the individual investor.

Some do not see enough reward, some think it's too risky, while others are plagued by moral issues.

Are you helping the troubled homeowner or taking advantage of his misfortune?

Both the lender and the homeowner lose in a foreclosure action.

Neither want it to happen. Both parties are motivated to resolve the situation.

Motivated parties are key to the process.

The investing window of opportunity opens the day the Lis Pendens, the notice that a legal action is pending, is filed.

The window closes the day the property is sold at auction. The time between these two events enables an investor to work with the homeowner and lender to create a workout strategy or a purchase of the property from the homeowner before the sale date.

The amount of time the window remains open depends solely on state and local laws, as well as the behavior of the property owner.

As for the moral question, keep in mind that by buying pre foreclosures from homeowners in default, you not only help them, you generally rescue a loan and maintain the value of a property (and surrounding properties) as well.

If there is enough equity in the property, there is the potential to work out an arrangement that satisfies all parties and allows for a handsome profit.

That's what pre-foreclosures are all about: buying the equity in the property, working out an arrangement with the lender and the homeowner, then selling the property for a profit.

Investors follow these basic guidelines to ensure a successful pre-foreclosure purchase and sale:


Locate loans in default (pre-foreclosures)
Evaluate choices and narrow selections
Contact homeowner
Inspect property and loan documents
Determine homeowner's needs
Calculate your selling price and profits
Negotiate with lender, owner and lien holders
Close the deal, repair as necessary and sell



Cha Ching the king of blings words ring true! :SM029: Just ole Dan here John.