*NOTE:  I will be writing the main text of the articles concerning foreclosure, from my knowledge, and experience in a non-judicial foreclosure state.  This is sometimes referred to a "fast state".  I will note some differences for a judicial foreclosure state at the bottom of each article.

    The pre foreclosure period is the time after the notice of default (NOD) has been isssued, and to the moment the property is auctioned by the county officials.  However, a property can be purchased as a pre foreclosure, as soon as the homeowner realizes, that they are going to continue to be delinquent, and do not have, or understand the options  they have to remedy the situation.  When speaking to a homeowner, I personally make sure the person understands what to do when they are in foreclosure, and help them to explore ways to keep their home.  I do this because of my personal ethics, and without charge.  This is one of the main differences in an ethical investor, and a "shark".  Most average homeowners are not knowledgeable about the process to go through, if there is any chance of saving their home.  I attempt to engage them in a conversation about what have they already done to try to work something out with the lender.  Also, I offer them a free report that gives them the knowledge they need to proceed on their own.  If they find they have no alternative, other than to sell their home, they will most likely turn to someone who has helped them try to save their home, rather than the "slick Eddie", who tried to push them into a sale by scare tactics.

     This period of time is a highly emotional time of course.  Some homeowner will be "in denial" about their situation, and even though they are going to loose their property, they will not admit it, and will not act.  Other homeowners will consider anyone who talks, or send mail about their foreclosure, to be "sleaze", who are preying on them.  This is partly due to the emotion of the situation, and partly because of the bad reputation some unethical investors have made.

    As an ethical investor...you are not someone that is a foe.  You did not cause their situation.  You are someone who can offer the hope of saving the home, (if that is realistic), or can offer a solution to the problem of being foreclosed upon.  The credit ding of a foreclosure, or bankruptcy is much higher, and long lasting, then having had a few late payments, that was caught up, or paid off.

    I will be posting more about the foreclosure process in subsequent posts.

    *NOTE:  In a non-judicial state a NOD is sent by certified mail.  In a judical state the NOD is delivered by a sheriff.  In a non-judicial state at the same time, the lender turns the file over to a attorney.  In a judical state at the same time a lis pendes is filed at the county court house, and a court date will be set.  Therefore, there is more time for the homeowner and the investor in a judical state.

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