When facing foreclosure, it is important to carefully consider all your options and not allow yourself to be taken advantage of by the many people that may try to benefit from your situation. There is an entire group of investors that are devoted entirely to purchasing foreclosure and pre-foreclosure properties as inexpensively as possible. We've all seen their signs by the side of the road, "Cash for your house!" "We buy anything" etc. These investors are an important part of the real estate market but their primary objective (regardless of what their ads might say) is not to help you, it is to make money. Just because you are facing foreclosure doesn't mean that you have no bargaining power or that you should settle for the first price you are offered. Contacting these investors may make sense for you, but you should know your home's true value before you call.
Many home owners mistakenly believe that websites will give them an accurate value for their home. http://www.zillow.com/ is famous for having extremely over-inflated "home values" in some areas and ridiculously low values in others. http://www.realestateabc.com/ is thought by some to be slightly more accurate, but the best way to determine the true value for your home is to ask a Realtor to run recent comps for the neighborhood. This information is ESSENTIAL if you are going to negotiate with a potential buyer. If you do not use a Realtor, at the very least check several of the home valuation websites and compare their results. Then take a walk around your neighborhood to see what similar homes to yours are listing for.
Another tactic to watch out for is companies or individuals who promise to make payments on your mortgage and lease or rent the home back to you at a lower monthly payment. While these types of arrangements can sometimes work if they are executed properly, all too often, the homeowners will begin paying rent only to find out several months later that after one or two payments their "savior" stopped paying the mortgage bills...leaving them in foreclosure and out the amount of the rents.
Finally, if you decided to accept an offer for the purchase of your home, insist that the buyer pay for a licensed escrow and title company to handle the transaction. Speak with the escrow agents personally and make sure to ask any questions you might have about the sales contract or any aspect of the transaction.
Foreclosure Help and Information: If you are considering doing business with a company or an individual that "buys houses" google them first to see if there has been any negative feedback regarding their services posted on the web. It's not foolproof, but it can help you avoid some scams.
