Whether you are purchasing a home for the first time or an investor deciding on purchasing pre foreclosures could be a good option for you. You will need to be informed, prepared and know the market you are shopping in. Your purchase of a pre foreclosure will keep the current home owner from receiving a negative mark on their credit report with a foreclosure on it.

Though the market is low and foreclosure rate high there are top cities that have the most opportunity for procuring a pre foreclosure. You will want to check out the actual market value of a property you are interested in. Also research if the property has any other liens on it, for example back taxes. You can also see what other homes are selling for in that location should you wish to turn the property around fairly quickly.

Before actively pursuing a buy you will need financing. You will need to know how much you have to spend before you look. A foreclosure has a limited…