Buying Pre-Foreclosures... What am I missing?!

[Jordan Tasei]

I've been researching pre-foreclosures in my area for quite some time. I spend hours on the county site seeing which properties have had NEDs recorded, comparing original loan amount vs owed amount vs EMV. There was one I wanted to purchase as a primary residence, unfortunately another investor beat me to it. They were able to purchase it for ~70% of EMV, flip it within a month and resell it for full market value. (Not sure what amount was profit) I see the numbers and how it works, is it just all about the leg work and outreach to those homeowners? Is my example deal above unheard of for pre foreclosures? As far as I've come to understand, if you purchase something pre foreclosure you can obtain a conventional loan correct?  And if I were to purchase it as a Primary Residence, I don't necessarily need 20% down. If purchasing with a conventional loan, I would be protected from any liens against the property, or at least have knowledge of them no?

  Am I way off base here, or do I just need to make contact with these homeowners and keep looking at the numbers the way I am?

Thanks!!