True or false ? pre-forclosure houses are better than florclosed houses to buy?

why or why not





what are the differences, advantages and disadvantages of eachTrue or false ? pre-forclosure houses are better than florclosed houses to buy?
Pre-Foreclosures are a short run from a short sale. You can buy a short sale and get the loan needed from the bank. A foreclosure is one that requires a Bid and cash to buy.True or false ? pre-forclosure houses are better than florclosed houses to buy?
Pre-foreclosed houses still have a while to go and the people living in them can stretch it out for a while.


I personally would wait till the mortgage holder takes control over the property, you will be paying a little more but it expedites the process and the price is negotiable. Check MLS for some nice homes or even go to an auction. But one experience when I purchased a pre-foreclosed apartment the past owners left the water running and it flooded the complex. Good luck on whichever one you choose.
FALSE.





Foreclosures are a thousand times cheaper! Pre-Foreclosures are just like discounts. They can find away to pay them back real fast with help from family and friends. So you could be run out of a great deal. Foreclosures are at the ';it'; point, when you can buy them with out the sunrises.





Well, not the unusual surprises, anyway.
Foreclosed properties are much easier to close escow on than pre-foreclosure (or short sale) properties. If you enter into a contract on a short sale property you have about a 20% chance that your contract will actually result in a successful sale. Why? because banks are stupid. They don't really know how to do short sales. In most cases they have taken extra people from other departments and tossed them into a new department called ';loss mitigation';. I talk to these people 2 times a week for each of our files and I get a different answer every time..Bank of American is the worst offender. Each short sale is different because all banks and most loans are different. If the loan is a Fannie Mae held loan then it is REALLY different.





While you may need to be be more aware when you are purchasing a foreclosed property the extra effort on your part will definitely be worth it. More than likely you will get the property for a lower price and quite often there are only minor repairs that need to be made. The best way to determin that there are no major issues is to have a home inspection by a license home inspector.





While my office currently is involved in listing several short sales we encourage our buyers to think twice before buying one. Long story short, you could be on the hook with a short sale for 6 months and still wind up with nothing. Or you can puchase a foreclosed home and close in 30 days.





Note: Homes that are already foreclosed (REO) vs homes that are currently in foreclosure (pre-foreclosure, short sale). These last 3 are all one in the same in Arizona and a home that is already owned by the bank is infinitely EASIER to purchase than a home that is in a short sale situation. Honey, I do this every day too and REO homes are not much harder to close than traditional sales.
Sounds like a homework question:





Depends on the house.





Technically, there is no such thing as pre-foreclosure....either a house is in foreclosure or it's not...the law doesn't recognize ';pre-foreclosure';.





Advantage of EITHER: You can get the house for less than market value.





Disadvantage of EITHER:





Any house that has financial difficulties associated with it has a very, very high probability of liens...I have worked in real estate for 20 years and I don't do title searches on my own...I hire someone to do them so I can hold them responsible.





When purchasing, if a house is not in foreclosure, you deal with the seller directly...like any other house.





When purchasing a house that is in foreclosure...you can't deal with the seller because they no longer have legal control of the house...you have to deal with the Trustee that is assigned to the mortgage account.





PS: The poster above that said a foreclosure is easier to close than one that is not, has obviously never bought a house in foreclosure...UNLESS it's at auction.
The answer will vary house to house. Pre-forclosure houses will have sellers more willing to negotiate and the property will probably be in better shape when you take possession. Forclosed houses have a higher chance of damage and neglect. Banks are not as flexible as owners and you won't get a disclosure. I would take the Pre-forclosure anyday over the foreclosed. The one forclosed property that I purchased had animals living in it, no power to the house, a deteriorating roof, and vandalism done to it..... lots of work before it was liveable again.