Steps to purchase a pre-forclosure
I saw a home vacant ( a few articles are in there) right down the the street where I live. I would love to purchase and move in it but I see it is in pre-forclosure. I know the names of the owners, but not personally. The family (farm) has gone into default, so I am wondering that they too cannot make their payments as well.
What can I do, or should do, if I want to be the 1st to get my hands on this property? I know the name of the bank who originally who had the loan on it. The original pictures do not do it justice, but I did take a peak through the front door glass, and noticed so many upgrades. What should be my 1st step, 2nd step and so forth in order to obtain this property so that I can move in. I would rent my home where I live now.
You want to tread carefully, but it is possible to see if you can buy this in pre-foreclosure. Are you sure the property is not listed for sale? Some sellers want to maintain their privacy, so there may not be a for sale sign or an address listed in MLS. I’d start there by finding out if it is listed for sale. You can do so by looking online on sites like Realtor.com and Zillow, etc. in the town where the property is located.
If it is not on the market, you could write a letter to the owners, not mention anything about possible foreclosure, but say that you were in the neighborhood and saw the vacant home and are wondering if they’re interested in selling or if it is for sale. You might be the answer to their prayers.
If they are interested in selling, but they’re under water on the mortgage, you could ask them to ask their lender if they’d entertain a short sale. A short sale is selling the property for less than what is owed, because it is under water.
Hope this helps!