Foreclosure Investing - Are You Capable Of Handling The Pre Auction Stage?

You find keen investors can enter the game at numerous stages in the foreclosure process. The main stages include:
* pre auction
* auction
* post auction.

Let us have a gander at the pre auction stage.

Usually the first reaction of people who find themselves in financial strife with their home repayments is to act like an ostrich. That is right, an ostrich! They stick their head in the ground and hope that the problem goes away. Unfortunately, before they know it, the hole of debt is so deep that it is near impossible to climb out and they find they must sell their home.

What they should have done was to contact any number of professionals who specialize in foreclosures. Normally by the time the homeowner acts, the banks have had their say and the now distressed homeowners are in a state of panic not knowing which way to turn for help.

As a foreclosure investor,if you are game, you can now enter the process. At this stage you can offer the homeowners a solution or a way out whereby they can cut their losses. You may even be able to help them find a way where they can hang onto to their property. You may think that this defeats the purpose of the exercise for you as an investor. Just remember, what goes around, comes around. Anyway by this stage, in most cases, the ship has already sailed. At least you have tried to help and the homeowners
will thank you for it.

Why would you bother trying to help? By acting with a bit of compassion and integrity you are distancing yourself from the sharks in the foreclosure game. You can build a reputation as one of the good guys which will result in more leads. Leads are the bread and butter in the real estate investing game.

Better still, why not just wait for the auction? There are a few reasons why you may consider moving early. There are less investors to compete with. You will find there are more opportunities at this stage. You have a bit more time to thoroughly inspect the property and a bit more room for negotiating with the distressed homeowners and the lender before working up a deal. Closing a deal on the property at this stage means there is no redemption period to be concerned about.

Many parts of the USA give the homeowners their last chance to save their home. It is called a redemption period and can last anything up to a year. If they can raise the money to cover what is owing, they get the property back and the highest bidder is no more.

It is important to remember that when emotions are involved that nothing is purely back and white at this stage of the foreclosure process. Anyone who is married knows how emotional they and their partner can be when they suffer from sleep deprivation from worrying about anything, let alone financial woes as serious as losing the roof over their head.

As a human being, dipping your toe in the water at this stage of the process exposes you to anger and resentment. You will face indecision, misleading information and sometimes the lies of people in denial and falling apart emotionally at the thought of losing their home. You must be prepared for this and the complications and legal issues of dealing with the finances of people on this roller coaster ride.

Consider both sides of the coin when dealing with folk at this time of their lives. Honestly ask yourself whether you are prepared or even capable of handling such an ordeal.