The lender knows it will probably be taking a loss because, if the property was worth the debt on it, the owner probably would have already sold it to avoid the foreclosure. The property owner would like to avoid the foreclosure as it will have very negative consequences for his credit, and can severely limit his chances to obtain credit for a long time into the future. Property owners and lenders are both in awkward positions when a loan goes into default. If your offer is less than the amount of the debt on the property, ask the owner to present your offer to his lender.

Have your financing lined up so that you know you will be in a position to close when settlement time arrives.Have an attorney or title company search the title to the property noting any other liens, restrictions, or encumbrances that may exist.Money spent on a real estate appraisal in such circumstances is money well spent. Have a qualified appraiser or real estate professional supply a valuation.

(Please keep in mind that the owner may still be living in the property and their privacy should be respected). Drive around the area to make certain it is a community that is right for you.

Schedule a visit to the property so you can see for yourself what condition it is in.

If the property is already listed with a Realtor, contact that broker to get specifics as to the asking price of the property, its condition, and the willingness of the seller or lender to negotiate a short sale.

Contact the current owner of the property to discuss the terms that might be acceptable.

Steps as you search for your pre-foreclosure property:

174 high tor drive watchung nj