A foreclosure begins with a Notice Of Default. It lets the owner know that they are in default on their loan payments and that the lending institution will begin foreclosure proceedings if the payments are not brought up to date.



The property owner can prevent all this by making all past due payments and the foreclosure process will stop. If the payment cannot be paid, the bank will foreclose on the property anywhere from 45 days to 6 months from the time the bank first sent out the notice of default.

You can usually find more information about notices of default as a public record in the county courthouse. You go to the courthouse and put together a list of homeowners who have received notices of default.

The next thing you want to do is try to locate and talk to the homeowner even if they are losing the house due to delinquent payments. Word of caution - you must be polite because you have to understand their position and be sincere about their situation.

It can be tough at times trying to communicate with someone who is about to lose their home but you have to understand everyone goes through a financial bind every now and then but you're trying to keep a home from being foreclosed. Also keep in mind, you're helping someone from having their credit ruined for years simply by speaking out about a delicate problem.

By speaking out you may be able to stop the foreclosure process by coming up with a creative deal or purchasing the house. Again, by speaking out to the owner may be a blessing to them and they may even thank you for taking the burden off their shoulders.

When you buy a home in the pre-foreclosure process, you're negotiating a deal directly with the owner. The owner generally wants to stop the foreclosure process by selling you the property and settling with the bank. You want to buy the home at a price that's low enough to make it worth purchasing but fair enough that the current owner can escape foreclosure.

One thing you must understand and do is to make sure you inspect the home. What can happen is the owner may not have the money for the mortgage payments and if thats the case they may not have the money for repairs and maintenance.