If you are buying in a neighborhood that already has a lot of older rental homes and someone bought a home and can not make the payments the answar is NO. Unless you can ger the house for 50% or less the going rate. LOL.e Frwy
If you are talking about a newer bedroom subdivision yes. If you are talking about the West side of the
There is no list of the Preforclosed Homed - we are discussing a new entry on our MLS to seperate them. At this time you need an experienced realtor that know how to spot them when it is not included in Agent remarks.
Don't discount all foreclosures either - same lending institutions have cleaned up, will make allowanced for repairs and lein issues are gone.
Margaret T Hatcher
If you purchase in a known area with other foreclosures, make sure you plan on holding title for a while until the market corrects itself in that area otherwise you may find yourself in a position that other homeowners are in currently, they bought two years ago and now can't sell or refinance because of the lower values.
There are a lot of variables in this market when looking at pre-foreclosures or foreclosures for that matter. Work with an agent that has experience with them so you'll know your odds are better at getting it closed...
You are wise to try a pre forclosure - Why - Well when showing foreclosures I usually warn people that people take care of their homes the same way they do their bills- prepare to see a mess. With a pre forclosure it is usually someone that has some sudden change in circumstances and they are trying to take some responsibility. These people quite often have not neglected their homes and if so not for as long.
Both buyers agent and sellers agent must know what they are doing in a short sale. Your agent will have to be quite experienced in this field - I have had to hold hands and walk the selling agent through this process . Your answer from Ms Feldman is correct - sometimes you can get to the end and have it all fall apart - that is why you need an agent that stays on top of it. We still can not be "GODS" there are some banks that no one can deal with - and I won't.
Another advantage to pre forclosures is that they are not as time sensitive as your Bank owned and HUD properties on closings. You are allowed inspections and at times price ajustments for repairs. Again this has to do with the lender you are dealing with.
Good Luck with your search
Watch out for the amount of time it will take to get an answer from the bank. Watch out for other buyers who out bid you in the process (submitting their offers even long after you've submitted yours). Watch out for falling in love with a property you may not be likely to get. Watch out for tying up an escrow deposit on a property you don't control. Watch out for the bank not paying some of the traditional closing costs that seller's pay (but you don't have all the dumb fees in Texas that we have in Florida so you may not have as many of those issues).
You can get a list of homes from a knowledgeable Realtor in your immediate area and you can utilize that Realtor's experience to help you through the negotiation and communication process with the bank and to keep you from tying up that escrow deposit.
You will have the opportunity to have the property inspected and appraised prior to closing.
Your first step is to get a lender letter of pre-approval as ALL short sales and foreclosure sales (banks) will require that you be pre-qualified or show proof of funds before they execute a contract of sale with you -so just get this out of the way early.
Any list you buy will be old, don't waste your time. The banks are working directly with Realtors to move these properties out and that's your best resource in this process bar none.
I miss Houston, lived there 27 years. Good luck, hope you get a great home and a great value,