Everyone loves a bargain, and in the real estate world there are deals which can be great investments... if you understand the risk involved. It is important to do your homework when considering the purchase of a foreclosure. Understanding how the process works and knowing that the homeowner/ borrower has defaulted on their loan payments for 3-6 months which begins the pre-foreclosure process is the first step.

There are several ways a foreclosure can play out: -The borrower can pay off the default in the pre-foreclosure stage and no foreclosure takes place -The borrower can sell property to a third party and negotiate terms which prevent the borrower from having a foreclosure on their credit history -A public auction or short sale is held and the property is sold at the end of pre-foreclosure -The lender can buy back the property from the borrower either at auction or through an agreement during pre-foreclosure and try to resell it

If you choose to buy during pre-foreclosure, approaching the borrower and offering to buy the property outright will yield the largest profits and ability to negotiate a favorable outcome for all. Make sure you navigate through this process by following a few simple, yet crucial steps: -Prepare your resources: loan pre-qualifications, enlisting the help of an agent if needed -Confirm property status: Call the listed trustee to ensure owners have not paid off amount owed, sold the property, or that is up for public auction -Evaluate bargain/investment potential: Subtract outstanding liens and loans from the estimated market value to determine accurate equity -Contact the owner: unless it is on MLS, contact directly to express interest -Negotiate a purchase agreement and close the deal: ideally during pre-foreclosure (to protect the borrower's credit and something to show for the property equity), you will negotiate a deal before the property is put up for auction

If you buy after pre-foreclosure, there are two options: -Public Auction: Cash pay, with minimal research or knowledge of condition beforehand, but offers the potential of the best bargains -Bank-Owned: Lender will re-sell property to recover the unpaid loan amount and will sell with a clear title. Typically, the bargain potential is less that a pre-foreclosure sale or an auction

The foreclosure process can be a bit daunting.... allow our knowledgeable brokers at New Mexico Mountain Properties in Taos and Angel Fire assist you through the foreclosure process should you decide to go that route and the property is listed on the Multiple Listing Service.

If a foreclosure is not for you, we can you find a property that suits your budget, your interests and your life! We can help you explore all the options and find what you are looking for whether it is a condo in Taos, Taos land for sale or a home for sale in Angel Fire, we are here to help. In Taos, call 575-758-5852, or in Angel Fire @ 575-377-2626 – Our Angel Fire office is located in the log cabin conveniently located at the blinking light on Highway 64 and 434 with the big tipi out front. Our Taos office is located at 502 Camino Cortez, just down the street from Walgreens.