Due to the recent real estate collapse, many people across the United States are losing their homes to foreclosure. The period of time before the official foreclosure is called pre-foreclosure. Depending on the state the pre-foreclosure period lasts from seven days to a 60 days. Real estate experts know that the pre-foreclosure period is a great time to purchase a home.

Many houses that are ‘for sale by owner’ are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Many Realtors agree that buying a pre-foreclosed home is an excellent idea. Here are many advantages to buying a pre-foreclosed home from a homeowner rather than a foreclosed home at a government auction:

- A pre-foreclosed home could actually be cheaper then foreclosure because you are dealing one-on-one with an owner who desperately wants to avoid foreclosure.

- Since you won?t be at an auction, you will be given more time to talk to the home owner about any questions you may have concerning the house.

- There will probably be less competition for a pre-foreclosed home than a foreclosed home at an auction. You won?t have to worry about placing the highest bid.

- You won?t have to worry about becoming frustrated from losing a bid.

- Auctions can be annoying for some people. Some people become very angry when they are outbid.

- You have more time to have a pre-foreclosed home inspected than you would at an auction. You will be aware of any potential problems the house may have.

- You don’t need all the cash up front like you would at an auction. You can pay a down payment for as low as a few hundred dollars!

Always check to make sure that the pre-foreclosed home you?re interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you?ll know of any problems it may have. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive! You can even resell the pre-foreclosed home for more money than you purchased it for.

Due to the recent real estate collapse, many people across the United States are losing their homes to foreclosure. The period of time before the official foreclosure is called pre-foreclosure. Depending on the state the pre-foreclosure period lasts from seven days to a 60 days. Real estate experts know that the pre-foreclosure period is a great time to purchase a home.

Many houses that are ‘for sale by owner’ are houses that are in a period of pre-foreclosure. The lenders sometimes allow the homeowners to try to sell their home before foreclosing it. The banks are not in the real estate business themselves and would rather the owners sell the home instead of (the lenders) having to foreclose it.

Here are several reasons that real estate experts feel it’s a better to purchase a home during the pre-foreclosure period instead of waiting to buy a foreclosed home at a government auction:

- Pre-foreclosed houses are often cheaper considering as it’s being sold by a home owner that is in a hurry to sell to avoid facing foreclosure and the bad credit that goes along with it.

- Since you won’t be at an auction, you will be given more time to talk to the home owner about any questions you may have concerning the house.

- There is usually less competition for a pre-foreclosed home than a auctioned foreclosed home. You won’t have to worry about placing the highest bid.

- The situation allows for more time to evaluate your finances.

- Auctions can be a skill in itself and many people are not comfortable in that environment.

- You can bring an inspector along with you to inspect a pre-foreclosed home.

- You don’t need as much cash up front like you would at an auction. You can pay a down payment for as low as a few hundred dollars!

Always check to make sure that the pre-foreclosed home you’re interested in has no liens or judgements against it. You should also bring along someone to inspect the home for you so you’ll know of any problems. The risks in purchasing a pre-foreclosed home are similar to purchasing a home the traditional way, only a lot less expensive.

In the United States, the economic crisis is only continuing to get worse. Bank foreclosures and pre-foreclosures are at the highest number since the time of the Great Depression, and contribute to over 40% of the houses currently sold. Every day we hear on the news about another bank failing and the government debating on whether or not to bail them out. So many Americans are losing their homes and having their dreams crushed.

Hard to believe but there is some good news regarding this home foreclosure crisis. Where there is a crisis there are also opportunists who are grabbing the houses many others are being forced out of. The banks will sell the foreclosed homes well below their value in order to quickly regain some of the money back. This helps ensure that the banks finally get rid of the homes that they don’t really want to continue losing money on. This is a positive opportunity for investors or some families who have job security and a decent credit whho ordinarily wouldn’t be able to afford a decent home.

The owners that are facing foreclosure will sometimes be allowed to go ahead and sell their home during the ‘pre-foreclosure’ period. The pre-foreclosure period can last anywhere from a few weeks to a few months, depending on state laws. The public is notified through government auction sites and other listings of the homes facing foreclosure, and interested buyers are often able to work things out with the current owner and/or banks. Just like foreclosed homes at government auctions, pre-foreclosed homes are sold at low much reduced prices.

Needless to say, there are also opportunities to profit from buying both bank foreclosed and pre-foreclosed homes. Many people who have never had any interest in real estate before are now buying these homes and reselling them for great profits. Foreclosed homes can sometimes be sold for as much as 75% off of their market value. Imagine how much money a person could make by buying even just one foreclosed home and reselling for 100% profit. It happens to people that are willing to take action every day. How are these people finding out what homes are going to be sold at government auctions?

Information concerning foreclosed homes and government auctions can be found on the Internet. Of course, with most money making opportunities, there are scams out there. There are some legitimate government auction websites that do charge a membership fee that is worth the price. Members are provided with detailed information and listings of homes facing foreclosure in all areas of the country. But how can we know which ones are worth the membership price and which ones aren’t?

The research is actually very easy to do if you read information on government auction ‘review’ sites. These reviews are very informative and they will keep visitors updated on the top, most trustworthy government auction membership sites. The government auction reviews test through specific criteria, and are scored according to the results. Obviously, the higher the score, the better and up-to-date the site’s foreclosure details are.

With the top membership sites you will find in-depth information and deals on foreclosed homes, pre-foreclosures, and more. So if you can follow these steps then you can find your dream home for only a fraction of its worth:

- Read reviews of the top sites at a free government auction review site

- Visit and join a recommended government auction membership site

- Check out all the detailed foreclosure listings until you discover a selection of homes that you like in your price range

- Where possible check out the houses of interest and afterward attend the goverment auction that the properties where listed with

In this current real estate crisis, many people are loosing their homes either because they can’t make the payments or are walking away because their house is worth less then the amount owed. It was reported by CNBC on July 24 that foreclosures now represent half of all the homes sold in the US. Although this is downright scary to a highly leveraged homeowner or speculator this is also an opportunity of a lifetime for anyone looking to buy real estate at these depressed prices.

If you look at any successful real estate investor, they have accumulated much of their wealth by buying when there was a downturn in the market. Donald Trump is a good example of someone who was buying up real estate real when everyone else was selling as illustrated in the quote. “When I first started out in Manhattan, everyone was saying what a terrible market it was, and if I’d listened to them, I would not be where I am today. There are always opportunities.” Donald Trump.

Many real estate experts including Donald Trump agree that now is a great time to invest in real estate and understand that pre-forecloses offer one of the best, if not the best, real estate opportunities.

The great thing about buying a pre-foreclosed home is that you are dealing one-on-one with the owner and have a chance to ask questions and inspect the house. Since the bank has time to evaluate the property there is a higher probability of being granted a mortgage.

It is important to understand the surrounding community or macro aspects when purchasing a pre-foreclosed home. Here are some macro aspects to consider:

- Look around the neighborhood to see how many homes are being foreclosed. It’s best that the house you’re considering for purchase is the only one facing foreclosure. Obviously the more homes in forced sale, the more likely the properties will depreciate.

- Check with the local tenants to see what the rent levels are and whether they have been increasing or decreasing over the last little while.

- How strong is the economy at the town and county levels? Is the current employment rate growing or stagnating?

- Check with local authorities to become informed about any infrastructure projects that may be planned within the next two or three years. Things such as new buildings and highways being built or corporations moving into town can be a positive indication of future growth.

- Demographically if there is a high number of elderly people living in town who are home owners, then there could be an over supply of housing in the future, as they move in with family or nursing homes for care.

If you do your due diligence and find positive answers to these questions when considering a pre-foreclosure then you can feel secure that it is a good community in which to invest. Successful real estate investors buy discounted properties at the right location at the right time.