Found a home in "Pre-Foreclosure", now what?

[Joe LaGreca]

I found a home nearby my that is listed on Zillow as a pre-foreclosure.  Yes, I know that zillow's information can be outdated.  Which is why I'm here, asking what are my next steps to figure out if this is a good deal or not?  

Do I go and knock on the door and talk to the people living there?  Call the foreclosure agent?  

[James C.]

David,

This depends.  Sometimes Zillow puts an agent in on those FC properties that is just an agent,  they aren't actually listing the property. The best thing to do is to try to get in touch with the owner of the property.  If you get in touch with the owner then they can tell you if they have it listed or not. If you can't get in touch with the owner, then you can try the agent listed on Zillow. Make sure you ask the agent who they represent and get it in writing somewhere. 

As far as letting the owner stay,  as long as it's their property they can stay in it. Once you buy it  or otherwise encumber it (lease option,  sub2 etc.) Then they are out.  You can help them to find a rental  (NOT ONE OF YOURS), and maybe pay a security deposit or first month's rent. Letting them stay is a very, very bad idea. 

As far as trusting an agent goes, in any business there are crooks. 99.999% of agents I know and those that I worked with were upstanding, decent folks trying to make a living.  I would trust but verify, since NO ONE is going to look out for you like you. If an agent gives you that wonky feeling, find another agent that doesn't make your guts go all wonky. 

Hope that helps. 

Good luck! 

Jim