Steps to purchase a pre-foreclosure?


Question:
Are there realtors that specialize in pre-foreclosure representation? I understand this is the best way to purchase a foreclosure, but I would like some help negotiating with owners in default. How would such a realtor negotiate a commission?

Answer:
A realtor's commission would still remain the same, no matter what type of property you are obtaining (ie. one at retail, a foreclosure, REO, etc.). But to answer your question, yes, there are realtors that specialize in foreclosure sales. It is a very competitive market, as most of these realtors will already have their pre-approved client list. It is best to approach local banks directly to ask for their REO list. Usually, this is the best place to start as an owner in foreclosure will most likely have returned the property to the bank.

Also, to find foreclosures in your area, I would check out the local county clerk's office. Usually, a bank will initiate foreclosure proceedings after three months of arrears. Look for foreclosure complaints that have been filed.

Hope this helps...

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I've never heard of a Realtor that specializes in pre-foreclosures, since pre-foreclosures aren't listed in MLS and typically aren't really even for sale until a buyer makes an offer. If you found a pre-foreclosure willing to sell, then you could use a Realtor to make sure all the sales contracts/disclosures, etc. are correct to protect you.

Good luck!
You'll only locate "pre" foreclosures if the owner is trying to sell. Until the property goes into foreclosure the owner's financial problems are NOT public record. Many owners in dire straights may well have their ads listed as "Submit ALL offers" or "Quick sale needed" or some such wordage. But unless the owner is trying to sell, you'll never know about it until it goes into the formal foreclosure process.
http://flippersonline.biz has a lot of free information.
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