A pre foreclosure home is an off market, distressed property that has not been repossessed by a bank and thus has not been put up for auction by the lender. Pre-foreclosures are generally still occupied by their original owners who unfortunately have fallen far behind on their monthly mortgage repayments. In some cases, there may be no longer any financial assets of any value which make it impossible for the owner to keep the property up to date and in good repair. In such cases, the owner must move out of the property before the foreclosure date comes nearer and a new owner comes on the scene.

To find a pre foreclosure home, you should first try to find out what the going rate is for such properties in your area. Then, you should contact a real estate agent who has knowledge of local auctions and the requirements which must be met by the homeowners in order to purchase a foreclosure home. Once you have an idea as to what the going rate is for a similar property in your area, you can get in touch with an attorney who specializes in foreclosure property law. With the help of an attorney who knows all the technicalities involved in the laws of foreclosure, you can better prepare for the auction in case you are required to participate. Most importantly, you can also be on your guard against any shady business deals that may give the winning bidder an unfair advantage.

Most importantly, you must ensure that you are prepared to stay in your home until the time of the auction. Many times, homeowners are allowed to stay a few extra days in the house after the auction is over, but you must make sure that you are present and ready to take possession of your house at that time. Failure to do so will mean that you are not out of your home and it won't be transferred to the new owner. Once you have purchased a pre foreclosure home, it's very important that you keep in mind how to flip it for a profit in order to gain profit and avoid unnecessary expenses such as lawyer fees.

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