My first Pre-Foreclosure
Hello,
With foreclosure rate going down and new investors coming in the market, it is getting difficult to find attractive investment properties on MLS. Having realized that I am trying to learn and understand opportunities to invest in pre-foreclosures. After some research, I found couple of properties which are in pre-foreclosure stage. These properties are in the same building where I already own couple of units so I know the area, valuations and I feel more comfortable, if I need to talk to the owner. However, since I have never done pre-foreclosures before, I have no idea about the next steps. Here are some specific info about the property and questions I struggle with.
Specific Info
As per Zillow, unpaid balance is $88K.
I am assuming he wouldn't have paid HOA for few months or may be longer
Fair market value of the property (ARV) is around $65K
This property is scheduled to be sold at Sheriff Sale/Foreclosure auction in Jan. 2015
Questions
- -How exactly ‘pre-foreclosure’ works? What are my next steps?
- -If I knock on the door, what should be my talking points? Is there anything I need to do before I go there?
Will appreciate any advice and help to make this deal. Would be more than happy to team-up with a local and experienced agent/investor, if interested.
Thanks,