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One of the dream people like to fulfill is to become a home owner. People buy home even though financial status does not support it. The result is very devastating when they default on the mortgage payments and subsequently lender takes steps to take the property back through foreclosure process. It takes approximately four months for bank or lender to go through the foreclosure process before they can take full legal possession of the property. It is really tough time for home owner to go through the process because no home owner wishes to loose their home and have credit rating negatively effected .

There are several investors in the market looking for healthy financial gain through these foreclosure homes or property. These investors are in the market for real estate financial gain.

These investor or interested party may gather foreclosure property information through court public records, newspaper classified, banks, lending institute, local realtor or through foreclosure web site such as RealtyTrac, where any and all information related to foreclosure property is available. As a matter of fact one can set up the system on web where they will receive regular email with information on foreclosing property.

First step for investor is to evaluate the foreclosure property in terms of the market value of the home and bank loan amount. If it is determined that Market value of home and loan amount is same then it is not a wise investment decision for investor to consider the next step. It is only beneficial for the investor if substantial equity resides in the property.

Investor's next step for pre-foreclosure homes is to contact the home owner before possession of homes is taken over by banks.

However, they are very careful how to approach the home owner because home owner might be upset, frustrated and angry.

Until bank completes the foreclosure process and gets legal possession of home ,home owner may legally sale the house by themselves and make arrangements to pay off due amount to bank and keep the ownership status to themselves or in another word stop the foreclosing process.. If home owner can make mutual deal with investor then it will be a win-win situation for both parties. Investor will make financial real estate gain and home owner can protect their credit.

If investor and home owner agrees on the sale price then process goes to lender and some tuff negotiation need to be made with lender. Once all party agrees then deal can be finalized. In pre-foreclosure deal investor can buy the property somewhere 15% to 35% less than the market value of the home.