During the pre foreclosure time and the period before pre foreclosure is official, is when the homeowner should be talking to the lending institution. Calling the lender and talking to someone about your situation can be a dreaded, painful experience. But, it is less painful, than having your home taken from you when something could have been worked out. If you are honest with the representative, and keep promises you make regarding payments, you will find they will be very helpful.

There are several ways a home in pre foreclosure can be purchased. The homeowner is the legal owner of the property until the moment it is sold at auction.

• Retail sale, with or without a realtor. This is reserved for a very good condition property, with reasonable cost, and in a seller's market.
• A sale, usually to an investor at a lower than normal market price, but enough to cover loan costs, and charges.
• A sale that involves catching up the arrears, then taking the property "subject to financing". This is making the monthly payments on the loan until the home is re sold
• A sale to an investor when the property has little or no equity can also be done. The investor works with the bank in getting a "stay" or delay put on the auction, and negotiates with the bank on an amount that is lower than what is owed to be the full pay off. This is called a short sale.
• Another way the home can be sold, is by selling the home to an investor for an agreed upon amount, then leasing back the home to the previous homeowner for a certain amount of time. Caution should be used with this method because there needs to be complete understanding by all parties, because the homeowner no longer owns the home, but continues to live there. (This is illegal in many areas.)
• Unfortunately, in this market, most homeowners that really need to sell, owe more than their house is now worth. In these cases, the home may be sold by a short sale, instead of letting it go to foreclosure.

Any of the above methods will save the homeowner's credit, from the credit score plunge of a foreclosure. The credit report may just show a few late payments, then a pay off, or continued on time payments after a few late payments.

To find out if you are in a Judicial or Non-Judicial state, click here

CAUTION: Before buying any property, but especially a pre foreclosure do a thorough title check first. All liens stay with the property, and must be paid. This includes second mortgages, lines of credit, tax liens, workman's liens and so on. Also, the title check will be to make sure there are no clouds on the title concerning clear ownership.

Kathleen Couch is an expert short sale negotiator, and has started the company, KC Real Estate Solutions to serve the short sale needs of homeowners, and real estate agents. Kathleen and her team of professionals will do the negotiating with the bank, freeing the real estate agent to list and sell. With the experience of KC Real Estate Solutions you will find you can get higher commissions, and a quicker process. What is even better is there is no charge to the homeowner or agent. For more information, go to: http://www.KCRealEstateSolutions.com

During the pre foreclosure time and the period before pre foreclosure is official, is when the homeowner should be talking to the lending institution. Calling the lender and talking to someone about your situation can be a dreaded, painful experience. But, it is less painful, than having your home taken from you when something could have been worked out. If you are honest with the representative, and keep promises you make regarding payments, you will find they will be very helpful.

There are several ways a home in pre foreclosure can be purchased. The homeowner is the legal owner of the property until the moment it is sold at auction.

• Retail sale, with or without a realtor. This is reserved for a very good condition property, with reasonable cost, and in a seller's market.
• A sale, usually to an investor at a lower than normal market price, but enough to cover loan costs, and charges.
• A sale that involves catching up the arrears, then taking the property "subject to financing". This is making the monthly payments on the loan until the home is re sold
• A sale to an investor when the property has little or no equity can also be done. The investor works with the bank in getting a "stay" or delay put on the auction, and negotiates with the bank on an amount that is lower than what is owed to be the full pay off. This is called a short sale.
• Another way the home can be sold, is by selling the home to an investor for an agreed upon amount, then leasing back the home to the previous homeowner for a certain amount of time. Caution should be used with this method because there needs to be complete understanding by all parties, because the homeowner no longer owns the home, but continues to live there. (This is illegal in many areas.)
• Unfortunately, in this market, most homeowners that really need to sell, owe more than their house is now worth. In these cases, the home may be sold by a short sale, instead of letting it go to foreclosure.

Any of the above methods will save the homeowner's credit, from the credit score plunge of a foreclosure. The credit report may just show a few late payments, then a pay off, or continued on time payments after a few late payments.

To find out if you are in a Judicial or Non-Judicial state, click here

CAUTION: Before buying any property, but especially a pre foreclosure do a thorough title check first. All liens stay with the property, and must be paid. This includes second mortgages, lines of credit, tax liens, workman's liens and so on. Also, the title check will be to make sure there are no clouds on the title concerning clear ownership.

Kathleen Couch is an expert short sale negotiator, and has started the company, KC Real Estate Solutions to serve the short sale needs of homeowners, and real estate agents. Kathleen and her team of professionals will do the negotiating with the bank, freeing the real estate agent to list and sell. With the experience of KC Real Estate Solutions you will find you can get higher commissions, and a quicker process. What is even better is there is no charge to the homeowner or agent. For more information, go to: http://www.KCRealEstateSolutions.com