Pre-foreclosure Balance Larger than Estimated Value Properties

[Melody Kushi]

Hi BP Mates!

I've been searching a property lead list regarding Pre-foreclosure properties in NJ.

Here's my very Newbie questions:

1. The Pre-foreclosure amount is larger than what the property's estimated worth w/ comps to backup. Is this a very bad deal?

Ex: Property's estimated worth is $300k. Owners owe $225k on the loan but have a total pre-foreclosure unpaid balance of $350k.

2. The properties have a positive equity (20% or higher). Is this enough equity on a house to refinance later...is that is the strategy of choice?

3. If I choose to wholesale a pre-foreclosure property, I would have to pay the foreclosure amount plus any liens associated to the property, correct?

I'm targeting pre-foreclosures since the NJ market is not the cheapest to start a Real Estate Investing business...or would you recommend I look at cheaper markets in the country?

Any advice is appreciated.