Buying From Distressed Owners
Since miracles are rare, most of these people end up staring foreclosure in the face. Faced with pressures of time and money, these property owners may be willing to accept a quick, credit-rescuing sale at a price less than market value. At that point, you may be able to help them salvage their credit record and part of their home equity and at the same time secures a bargain for yourself. Divorce, job loss, accident, illness, business failure, and other setbacks render people unable to make their mortgage payments.
Offer a financial offer to the owner, get a deed, bring the payments on the old loan current and then assume the loan, refinance the property, or resell it quickly and pay off the old loan. Rather than effectively deal with their problems as soon as default is imminent, most owners hang on too long hoping for a miracle to bail them out. The strategy for purchasing pre-foreclosures is to contact a homeowner in default weeks or days before foreclosure. Each year in every community, hundreds (and sometimes thousands) of property owners hit financial hard times.