Most people in the US are aware of the current real estate crisis and the unsettling fact that many people are losing their homes to foreclosure. Before a home is in the process of becoming foreclosed, it is in the pre-foreclosure stage. The pre-foreclosure period can last anywhere from a few weeks to a few months, and is considered by many real estate investors as the absolute best time in which to negotiate the purchase of a home.

A lot of times the banks don’t want to deal with having to foreclose a home, so they will allow the owners to sell it during the pre-foreclosure period. You can get a great bargain in buying a pre-foreclosed home.

Here are many advantages to buying a pre-foreclosed home from a homeowner rather than bidding on a foreclosed home at an 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.

– Because you are working with the owner you’ll be able to ask questions about the property you wouldn’t be able to otherwise.

– 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.

– More time to consider your finances before making the decision to purchase a home.

– 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 will be allowed to make a low down payment on a pre-foreclosed house. This is not the case at a foreclosure auction.

As with any house purchase make sure you check for any judgments, or liens against the estate. Bring along someone how is familiar with buying real estate and if possible have the house professional inspected. The risks are comparable to a traditional type of home purchase but with the advantages of foreclosure discounted pricing.

Getting ready to buy or sell a home in Utah? Make sure you visit Homes for Sale in Salt Lake City and get find out about all Homes for Sale Salt Lake City!