One of the ways that you can purchase preforeclosed homes for sale is directly through the homeowner or borrower that has defaulted on the loan. This can be done by taking over their payments and doing a loan transfer.
Many banks will allow for a loan transfer or taking over the homeowners payments when a home is in the foreclosure process. One thing to keep in mind is that not all mortgages allow for a transfer so this is not always an option.
You must contact the homeowner when you are looking for preforeclosed homes for sale unless they have a sign out front of the house with an agent’s telephone number. Ask about a short sale and find out if the bank will be willing to take less for the home than is listed.