There is a lot of opportunity for the real estate investor to profit in the buying of pre foreclosure homes. A house goes into pre foreclosure if the homeowner has failed to stay up to date on mortgage payments. The bank or lender can then file a notice of default, a public record, and the owner has to bring payments current to avoid the home from being sold by a trustee or at an auction. In the period of time between the lender filing and the sale, the current owner still has control of the property , and this is the ideal time for the real estate investor to make an offer on the property . The homeowner should be more willing to negotiate because selling the property could allow him to settle debt with the lender and possibly walk away with a little equity and no foreclosure to mar his credit . The real estate investor, as the buyer, is able to inspect the property and can determine needed repairs and renovations, which will effect the offer on the home . The real estate investor has a unique opportunity to get a quality property at a drastically discounted price. Think about arranging financing with a lender who has experience with pre foreclosure homes, and maybe including additional financing to cover the needed repairs uncovered during the inspection. Pre foreclosure homes are public record once the lender has filed a notice of default, so they can be found through records at your county courthouse. Because this kind of research is time-consuming and tedious , subscription services offer lists of pre foreclosure homes for a small cost . The real estate investor looking for this niche type of home should find the list well worth the fee, since it helps them to locate properties fast and supplies all the necessary basic property information . The number of pre foreclosure homes is growing in this weak economy, so the real estate investor should be able to locate and buy an ideal investment property.