Title: Pre-foreclosures: What Goes On Before the Auction Sale
Headings: Pre-foreclosures: What Goes On Before the Auction Sale
Pre-foreclosures: What Goes On Before the Auction Sale
Before Pre-Foreclosure Listings Go on the Market
Other Conditions for Pre-Foreclosure Homes

Content: There are certain conditions that go along with buying and selling pre-foreclosure homes, though. Before Pre-Foreclosure Listings Go on the Market
The pre-foreclosure property must be owner-occupied and not a rental property, unless the bank recognizes other mitigating factors like job loss or transfer. The mortgagee must have the pre-foreclosure property appraised by an FHA-certified appraiser, with “as-is” and “repaired” values noted. This could be a problem for the appraiser, depending on the local real estate market. The mortgagee must pay for a title search and apply for Approval to Participate, then arrange to delay the foreclosure long enough to sell. A non-marketable title for a pre-foreclosure home can knock everything off the table. Other Conditions for Pre-Foreclosure Homes
The pre-foreclosure home has to appraise “as-is” at a minimum of 62% of the market value, and it will also need to sell at a minimum of 82% of the appraised value. Obviously these conditions could be a problem in a depressed real estate market or a less-desirable area. The mortgagee will also need to keep up the property before the sale, list the pre-foreclosure property with a real estate agent and show all good faith in marketing and selling the property. As with other scenarios, scan your local preforeclosure listings.