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Have you ever heard of the term pre foreclosure? Do you think that this means the same thing as a foreclosed property? If you answered yes to these questions you are not alone. But at the same time, if you answered yes you are not familiar with the advantages of buying pre foreclosures.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank or lender. This means that the owner is still in charge of the property, but if they do not make any attempt to rectify their situation the bank or financier will repossess the home.

There are many benefits in buying pre foreclosures. The reason that most people miss out on these homes is because they do not know what they are, or how to find them.

The number one advantage of pre foreclosures is the lower price associated with such properties. The owner has to sell the house before the bank or lender takes it and is more inclined to listen to any offers that they receive. It is quite possible to find pre foreclosures that are up to 50% off of the market value.

In addition to the bargain that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in control during a pre foreclosure deal. If the home owner turns down your offer and fails to find another buyer, they will end up losing everything. If they manage to sell the home they can at least end up making back some money.

Finding pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. It is really up to you, and you can base it on what seems to be most effective.

Compared to foreclosed properties, you would normally face less competition with pre forecloses. This increases the chance of getting a great price and ending up with the home of your choice.

If you are looking for a new home, don’t forget to check out these properties. Buying pre foreclosures can be very profitable.

About the Author: Ken Fong
www.therealestatescoop.com
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