It takes a keen eye to observe some of these subtle hints to a pre-foreclosure condition. Networking with neighbors and service providers such as delivery companies, utility providers, and postal carriers can provide you with extra eyes.

13 Key Words or Phrases

1. Must Sell Any time you encounter the phrase must sell, you have come upon the right seller. It is perfectly acceptable to ask must-sell sellers why they must sell. You may discover that they are selling because they are behind on their mortgage payments.

We have heard some pretty strange reasons for selling, as well as the fairly standard legitimate reasons for selling. The point is that a sellers must-sell reason is his or her own.

2. Under Market The phrase under market can let you know that you have come upon the right seller and the right property. As a real estate investor you are a wholesale buyer. A property that is advertised as being under market puts you ahead of the game from the get-go.

Of course, you have to investigate to be able to determine if the sellers really know what they are talking about. Under market to a property owner may still mean overpriced to you as a real estate investor.

3. Below Appraisal Below appraisal is a phrase we like to hear. This occurs when a real estate agent tells us the property they are marketing for the seller is priced below the appraisal value. We know we have the right property and the right seller.

Again, you have to be careful here. Below what appraised value? Are we talking below the appraised value for insurance purposes? Are we talking about the appraised value for property tax purposes? Are we talking about below the appraised value for a home equity loan? Or are we talking about below the appraised value for a recent market comparison? The last value is the only one that counts.

4. Transferred Transferred can simply mean transferred. Or, transferred can be a code word for an owner in distress. In todays economy, when someone is transferred, they are often happy to have a job to be transferred to.

But they may have been out of a job for a while and be in pre-fore-closure.This is not a pretty sight for the seller. You may be able to put together a very profitable deal.

5. Divorce When you see or hear the word divorce, there is often a real estate deal close by. There are 2 to 3 million new marriages each year in the United States. There are 1 to 1.5 million divorces. What happens to the family home when there is a divorce? Statistics tell us that most real estate in a divorce winds up being sold so that the assets can be divided between the ex-spouses.

We have found the best offers in a divorce-involved property are all-cash offers. Each side is willing to take a hit on the purchase price because each wants as much of their equity in cash as possible. Sometimes we have been able to put a deal together several months after the divorce when the property becomes too much for the remaining party to handle.

6. Foreclosure Ad Usually, you see something like this in a real estate classified ad:

Seller in foreclosure. Bring all offers. 3Br/2Ba $169,500 Good area. (817) 555-2455

Call on the ad. Identify yourself as a real estate investor. Find out when the foreclosure sale is scheduled to occur. Set an appointment to meet with the owners to show them the foreclosure options presentation. Make an offer to buy their equity.

7. Illness Ad Unfortunately, illness is a fact of life. Sometimes your job as a real estate investor can really help people out of a tough situation. A real estate ad we saw read something like this:

Great family home in good area.

Call Jon. (972) 555-2455

Priced to sell. $275,000.

Illness forces sale.

We called Jon and found out that his wife had multiple sclerosis. They had a two-story home, and Jons wife could no longer climb the stairs. They were selling because they needed a one-story home, and they needed money for medical bills. This was a pre-foreclosure waiting to happen.

8. Death Death forces sale. This was the heading of a classified ad we read one morning in our local newspaper. Pretty tough situation. But the widow needed to sell after her husband was killed in a traffic accident.

The notice of default had already been posted. We made an equity-share offer on the property. We agreed to a price for today and to split any future appreciation 50-50. We would split the monthly payments 50-50. That way she could stay in the property.

9. Owner Will Carry When you see or hear the phrase owner will carry, you have found a built-in real estate lender to finance the deal.The owner is going to act as the lender. They are going to carry a mortgage or trust deed for part or all of the purchase price.

We have found that an owner in pre-foreclosure will offer to carry financing in order to make their property more attractive to more buyers. We have asked owners to carry the financing on our equity purchase in order to make the deal work.

10. Nothing Down No down payment. Zero. Nada. Nothing down means a seller wants their property to be the most competitive one on the market. This can also be an indication that the owner does not have a lot of time because of an impending foreclosure.

The owner may just want someone to take over the loan payments and get on down the road. Of course, nothing down may just mean noth-