What is pre-foreclosure, can they be found and how can one profit from these opportunities?

Pre-foreclosure is the time between after the lender has notified the home owner they are in default of their loan and up to the point the title of the property has been transferred to the lender.

Yes these pre-foreclosure opportunities can be found or located since many lenders make the information known early on in the foreclosure process. In fact, laws often times require lenders to make public foreclosures. Plus, lenders make their money selling loans, not properties, and therefore wish to avoid having loans default to the point of complete foreclosure.

This is where the opportunity for profiting on your part comes into the picture however; you will need to find these pre-foreclosures. And one of the first places would be by reading your local newspaper. Learn the day when ‘public notices’ get published and faithfully read that day’s paper.

There may also be county provided listings of foreclosures too. Make a phone call to the assessor’s office in surrounding counties; they will be able to tell you if this is the case. Another advantage to a list of this sort is getting the actual physical address to properties on foreclosure notice. This will enable you to make a drive past the property in order to decide whether or not you wish to negotiate buying from the homeowner.

Properties in foreclosure usually mean owners are motivated to sell in order to avoid further embarrassment in their situation. This is to your advantage and may be able to negotiate a lower buying price. As a house flipper this means higher margins when you find a buyer. Yes you can profit from pre-foreclosure.

However, you will need to do some extra work to find the properties. Some of that work is described above. It’s really a matter of doing your homework rather than any physical labor when finding pre-foreclosure situations. But there are some online databases, which might help you out too. These would require buying a membership in order to using the information available but this can be insignificant to the profit potential of house flipping.

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