National foreclosure relief
What to Look for in a Community When Buying Pre-Foreclosures
It's a tragedy that many people are forfeiting their homes during this sub-prime real estate crisis. It was recently reported that foreclosures account for 50% of the homes currently being sold in the US. Even though many people are losing their homes, there are many others who can finally afford a home or are now investing into real estate and taking advantage of these discounted prices.
Donald Trump is a great example of someone who was investing in real estate during a downturn in the market. Now look at him! "There are always opportunities", he is quoted as saying. "When I first started out in Manhattan, everyone was saying what a terrible market it was". He admits if he had listened to the nay Sayers he won't be were he is today.
Many of the most successful real estate investors currently see this as an opportune time to buy real estate (Mr. Trump is in this list) and see pre-foreclosures as the greatest means in which to negotiate the best deals.
The main reason to consider buying a pre-foreclosed property rather then waiting until in becomes a foreclosure property is because that way you can buy it from the current owner. This will give you more time to inspect the home as well as developing a mortgage with the bank.
There are macro (local community, etc.) and micro aspects to take into consideration when looking for a pre-foreclosed home. Here are the some of the macro aspects:
- Do you notice an extremely unbalanced number of foreclosures available in the area? It's preferred that your pre-foreclosure deal is the only one in the neighborhood.
- Check with the local tenants to see what the rent levels are and whether they have been increasing or decreasing over the last little while.
- How strong is the economy at the town and county levels? Is the current employment rate growing or stagnating?
- Check with local authorities to become informed about any infrastructure projects that may be planned within the next two or three years. Things such as new buildings and highways being built or corporations moving into town can be a positive indication of future growth.
- What are the demographics? If there is an extremely high level of seniors in town and only a small percentage living in nursing homes, guess what, it could cause a housing surplus within 10 years or so.
If these macro aspects all work out in your favor, and if the inspection of the house goes well, then chances are it's a great opportunity for you to buy that pre-foreclosed home. When it comes to making a mint in real estate it's all about timing and location.
To find the top pre-foreclosure sites the web has to offer check out government auctions review or go direct to foreclosures