Buying Pre-FC as a Primary Home not investment

[Dan D.]

So; I realize most of these threads on purchasing pre-FC properties are for investment purposes, but, I wanted your thoughts on utilizing this same strategy to buy a primary home.

Live in So Cal where listed properties are going for far above asking prices, multiple bids per property within 24 hrs, etc......

What are your thoughts on mailing to pre-FC homeowners, in the cities I am looking to move to and see if I can get in contract on one of those?  The goal is to get a nice place at a reasonable discount.  I.E.  Est Value 700k  offer 500-600k (obv assuming owner has the equity)

I am unsure if we (so cal) are in a bubble; but, the market right now is madness; and I would like to buy but with a bit of a cushion in case values are inflated.