In a pre-foreclosure deal, speed is your biggest asset. You must show the seller (and their lender) that you are a serious buyer.

This is the most delicate stage. You are contacting someone in a high-stress situation.

Your offer should clearly state who is responsible for back taxes or HOA dues and include a flexible closing timeline to accommodate the seller's transition. 6. Close Before the Auction Date

If the owner owes more than the house is worth, the deal must become a short sale , requiring the lender’s approval to accept less than the full balance. 4. Approach the Homeowner with Empathy

Obtain a pre-approval letter from a lender to prove your maximum borrowing amount.

Pre-foreclosure begins when a borrower is typically on their mortgage. To find these homes, you need to look where the public notices are filed: