Understanding and interpreting a pre foreclosure letter

A pre foreclosure letter is an unsolicited letter from an investment company or investor offering to buy your home. It is often difficult to figure out if the pre foreclosure letter is coming from a reputable investor or company or is from someone trying to rip you off. There are a lot of unscrupulous companies out there that are taking advantage of the rising foreclosure rates and people's financial problems.

You need to step back and view the pre foreclosure letter from a logical and reasonable place and without emotion in order to determine if it is from an investor or company that wants to help you or hurt you. You need to be educated about the foreclosure process and what your options are to try to save your home because the pre foreclosure letter may or may not be telling the truth.

These pre foreclosure letters are often made to look like they were written just for you but they really are computer generated form letters that go out to thousands of people.

What to watch out in pre foreclosure letters

You should be aware that many of the companies offering to buy your home to save you from a full foreclosure process are actually out to buy homes for way under their market value and they do it so they can benefit from the financial problems of others.

Other companies will offer you a decent price but it may be low because they, like all buyers, want to pay as little as possible. You should carefully consider what the pre foreclosure letter is saying and promising and think about how realistic their promises are. 

Most companies send out pre foreclosure letters, making many promises and offering things that they cannot really do but some are honest and legitimate. You can always call and talk to the company or investor and see if they are legitimate. Just ask a lot of questions.

What you can expect from a pre foreclosure letter

A legitimate pre foreclosure letter will tell you in a clear and specific way what the investor or company is offering you. You do not want to respond to letters where a person claims to work for an investor interested in your property or other things that sound fishy.

You should avoid pre foreclosure letters that do not give you a direct way to contact the person via e-mail or the telephone. The letter should make it clear if it is from an individual investor or a company.

There should be no charge or fee associated with a consultation with the investor or investment company. If you have to pay a fee to speak with someone or an application fee before you even know what they are going to offer you for your house, that should raise your suspicions.

You also should look out for any pre foreclosure letter that says a company or investor will buy your home even if it is in the worst condition. Most likely, the company or investor is looking for a way to buy homes for well below market value.

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