picIt has become a reality that many Americans have their homes foreclosed. They have no choice; lenders are not usually diligent in examining an individuals ability to pay monthly while others just don’t really care. So its not entirely new when owners are not able meet the mortgage requirements thus leading to having their homes foreclosed.
Whatever the reason of the owners delinquent mortgages, the lender will initially file a public notice of default which begins the process of foreclosure. The property is then placed in a pre-foreclosure stage.
To keep it short, a pre-foreclosure stage is almost the same as a grace period. At this stage, the owner has been warned that he is at default and he has to do something while the lender is not able to claim the property yet. Now how long the grace period lasts still varies, it will only be determined by the laws of the state. While some states have their grace period last 6 months, there are also others that have shorter periods.
Now if the owner wont be able to get the money required to pay the properties default amount, then the property would have to be removed from pre-foreclosure. It the default amount is particularly small, it may be possible that the owner might just get a personal loan in order to pay off the debt. However, if its ongoing, then this may result to more problems for the property owner. The best solution to this situation would then have to be having the house put up for sale. By having the house on sale, the owner would be able to get a reasonable price.
Its certainly a fact that no one would want to have their homes foreclosed but with the grace period or the pre-foreclosure period, it provides the owner a chance to find a solution.

Finding the Best Pre-foreclosure Deals
Finding the best pre-foreclosure deals is relatively easy if you just know where to look. You can find some helpful listings in newspapers, signs, lawyers, ads, and even courthouses. Yes, you can actually find pre-foreclosure listings in courthouses and even research files about the homeowners that are in default, usually published weekly or even daily. So try going to your own counties courthouse and try to talk to the clerk of courts and ask where you can see public legal notices or foreclosure notices. You might also want to try to go to the recorders office where all sorts of legal actions are recorded. So look for public notices that list homeowners who are in default. And once you find the listings, ask to make copies of these files.
Most newspapers these days have detailed information and that includes websites of legal notices. So find those homeowners who are still within the 90 days from auction as this will provide you appropriate time for short sale bank negotiations. Be aware though that when you find legal notices in newspapers, act quickly as the auction usually happens in 3-5 weeks from then on. But when you go the recorders office or the courthouse, owners still have months before the auction takes place.
You can also get pre-foreclosure leads via real estate agents themselves. Ask them that if ever they get to see an over-leveraged property to give you a call. Treat them well so they will treat you good in return.
Another way of finding the best pre-foreclosure leads is through giving out business cards and let people know you purchase distressed homes or properties. Hand them out to your friends, neighbors, workmates, colleagues, real estate agents, attorneys, and acquaintances.
Aside from those mentioned above, you can also try looking at signs, flyers, and ads. Try to find which methods work and start from there.

Purchasing Pre-Foreclosure Properties
What do you need to know about pre-foreclosure properties? First off, banks always go into the process wherein they take the owners property if he or she is not able to meet the monthly requirements specifically pay the monthly fees. Now in this stage, there is a certain time frame wherein the bank cannot claim it yet. And in this stage, the owner still has control over his property.
So what are the advantages of purchasing a house that is in a pre-foreclosure state? Usually, the pre-foreclosed house is within a very reasonable price range and this is the reason why a lot of investors prefer to invest with these types.
Now as an interested buyer, you can very well make reasonable direct deals with the homeowner himself since it is not within the banks control yet. You can even negotiate properly with homeowner and be able to do more research about the property. Remember that with banks, you wont be able to negotiate and you cannot even convince them to at least lower down the price of the property as they have already made their sale price. But with direct negotiation with the owner, both of you can make a beneficial agreement.
Before you go and buy a pre-foreclosed property, it is always best to take time to research and look for the best pre-foreclosure listings in your local newspapers, ads, and even websites. Being prepared is definitely the best advice anyone can give you.

Where to Find Pre-Foreclosures Leads
The house goes into a pre-foreclosure period when its owner has not made loan payments and the mortgage lender or the bank has already begun the foreclosure proceedings. It usually starts when the owner of the house receives a public default notification from the lender and the foreclosure stage has already been initiated. However, the house is still owned by the owner until all the legalities have been properly evaluated. Pre-foreclosure leads are then made available for interested buyers or investors before it is fully taken by the bank.
Pre-foreclosure leads (usually in their first stages of default) are made available in many sources such as Notices of Default listings in local newspapers. The internet is also one valuable resource for pre-foreclosure leads and in fact, some of these websites offer subscriptions so interested buyers can just look at the latest listings. Contacting a lawyer who specializes in this area would also be a great idea.
Since owner of the property still has the contract, the buyer must then give a written contract to the owner. The buyer may then work with the owner with the repairs or renovations or in any way they choose.