Pre foreclosures are those properties that have reached the final stages before they get foreclosed or taken back by the lender or bank. At this point the original owner is still in complete control of the home, although the bank or lender will repossess the home if the owner doesn't rectify the situation or cure the default. Normally, if the owner catches the payments up to date, the foreclosure process will be stopped and things will go back to normal.

When looking for a home, there are many benefits to checking out pre foreclosures over other potential sources. Pre foreclosures may well be the best possible source for a good deal on a home. Yet many people still miss the boat because they are unfamiliar with the pre foreclosure process.

The very best thing about pre foreclosures is the price. In most cases, the owner has no choice left but to sell the house, and will therefore seriously consider just about any offer that received. Due to this financial pressure, you can find pre foreclosures for sale at nearly 50% off market value. This is an ideal time to purchase, especially if you are looking to save a lot of money.

In addition to great prices, pre foreclosures create the ability to deal directly with the owner instead of a number crunching bureaucrat. Should the owner turn down your offer and be unable to locate another buyer, he may be faced with financial ruin. A low offer may still provide the owner with the ability to save his credit and pay off the loan.

The process of locating pre foreclosures is substantially the same process used to find properties which are already owned by the bank. One good source is the legal advertisements in the local newspaper. Internet sites such as Craigslist are also excellent sources for pre foreclosure leads. Once you have located a pre foreclosure, you will need to negotiate carefully to get the home of your dreams at a great price.

There is much less competition over pre foreclosures than foreclosures already owned by the bank. This can lead to steep discounts. Anyone who is in the market for a new home needs to check out pre foreclosed properties first.