You have knocked on the door, or sent a mailing, and have gotten a return call, or they indicated at the door, that they want to sell.  The homeowner that is facing foreclosure wants to sell the house.  Wow!  Were you caught off guard?  Do you have to find out how to do it real quick?  Or, have you already educated yourself on pre foreclosure investing, and also have the papers in the car to do business?  Saying, "I'll be back," may cost you the deal.  Before you come back, someone else may knock on the door, and be ready.  What does it take to be ready?

     First, you have to know how you are prepared to buy.  Will you be buying with cash you have in reserve?  Do you have an equity line already available on your primary residence?  Do you have a pre-approved loan that can be closed in time?  Do you have a private individual you can call to get funds within days?

     Secondly, the minimum you will need, as far as forms, is a form giving permission for you to speak to their mortgage company.  You will need to verify information about their loan.  The second needed item is a contract.  You will fill out the contract using information provided by the seller.  Have them sign the contract.  In your contract, have a line that gives you the right to void the contract, if when checking, the information is different enough to change the deal.  If the amount due on the loan is considerably different, or there are liens that cannot be resolved you may want to void the contract.  Or, if the comps in the area show you will not have enough equity, you may cancel the contract.  It doesn't mean you don't have a deal, but you may want to approach it differently, and use a new signed contract.  Of course, you need to be educated before it is time to write the contract, so you don't make a huge mistake.  Read books, read information on the web, go to seminars.  But, before you spend big bucks on some of the "boot camps" for real estate, make sure it is not just a lot of hype with a big price tag. 

     Don't forget my contest.  I am giving you the opportunity to get your money back by entering your book review.  Plus, this is valuable to your real estate investing education.  Click on the word contest to get complete details.

     Upcoming posts will be dealing with more details on pre-foreclosures, and methods of buying.  To make sure you don't  miss any upcoming posts, subscribe by email or by feed.  I love comments.  Leave your comment to let me know what you are thinking.