The Three Types of Foreclosures

Before you pursue distressed homes for sale, it's a good idea to consider the types of foreclosures you may encounter and determine which stage in the foreclosure process will work best for you.

Depending on the kind of foreclosure, you may want to alter your offer strategy. If a property is a candidate for a short sale, for example, you might offer a lower price and negotiate directly with the bank, after receiving seller approval. Negotiations with a bank on short sales could take weeks, if not months, to conclude. Not all buyers are willing to wait that long.

On the other hand, negotiating directly with a seller during a pre-foreclosure stage would likely result in a definite and somewhat predictable closing date, but depending on the amount of the outstanding loan balances, you might not get the best price possible. Especially when you consider the additional charges of foreclosure fees and late charges on top of the amount you pay the bank. It pays to do your homework beforehand . . . read more about types of foreclosures.

More Articles by Elizabeth Weintraub, click below:

• Buying Distressed Homes
  
• Making Lowball Offers
  
• Hiring New vs. Experienced Agents

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