Foreclosure Investing 101 – Pre-Foreclosure Part 5 of 8
Stage 1 – PRE-FORECLOSURE
The foreclosure timeline begins when the Notice of Sale (NOS) is issued. The NOS is a formal notice informing the home owner that the property has been scheduled for sale as a result of its default status. The pre-foreclosure period lasts up until the actual auction date.
WHAT YOU NEED TO KNOW
Tracking is critical
During this pre-foreclosure period there are a number of reasons that often can cause a property sale to be postponed. Examples that can cause a postponement include:
- Debtor files bankruptcy
- Owner disputes the debt
- Title Discrepancy
- Forebearance agreement
Therefore it is critical to track property status in order to know when the actual sale will take place.
Real Estate Investment Firm, through our partnership with Foreclosurepoint, provides real time status tracking that is constantly updated including:
- The actual auction date, time and location
- The estimated opening bid
- The actual opening bid
- If Postponed – the new sale date
- Responsible trustee details
Research is Key
The pre-foreclosure period is the time to extensively research the property. Detailed research will help identify good opportunities and ensure success at auction.
The most important research elements are:
- Accurate date, time and location of auction
- Property valuation analysis
- Title research showing all liens and encumbrances
- Bid info and Grantor, Trustee and Lender contact details
Real Estate Investment Firm provides a detailed property analysis for each property in foreclosure. This analysis report includes the following research elements:
- Property Details including current Photos
- Preliminary Title Summary noting anything recorded against the property:
- Voluntary liens
- In-voluntary liens
- Tax liens
- Detailed Property Inspection
- Judgments and comparable analysis
- Construction liens or other encumbrances
- Valuation Analysis (provided as a range), including auction bid calculator
- Property transaction history
- All foreclosure details, including opening bid details
NEXT: Stage 2
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