There is no "one size fits all" formula when it comes to preforeclosures and REOs. If a preforeclosure, for example is listed by an agent and it converts to a foreclosure, the listing agent may no longer represent the home and you may have to renegotiate with the bank. While banks have excess inventory and are not in the "home owning business", if they agree (big IF) to sell the house for less than the mortgage payoff, they can go after the owner for the difference. Your number one priority is to have an agent who SPECIALIZES in these types of properties if that is what you are exclusively in the market for. There are some great deals out there, but you have to be willing to search and then be patient throughout the negotiation process. Banks can be very slow to respond to your offer, etc., request additional paperwork and have VERY STRICT timelines in their contracts. It will be imperative that your agent knows how to handle the additional research and legwork to successfully find an "undervalued property" and execute the transaction. For the right property, it is definitely worth it!!!

Best of Luck!

Rebecca Ivanov, Helen Adams Realty, Charlotte NC