My regards to the community, I would be seeking your advice on some matter. I have some interests in real estate and have read that foreclosure is an efficient way to gather up profits. I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.

Depending on where you plan on doing the investment activity, there may be special rules you have to comply with to protect yourself. I strongly recommend finding and consulting with a lawyer familiar with the rules in your state.

For example, in California, buying property from people in foreclosure requires special forms of contract and disclosure, as well as a bond. These rules exist to protect homeowners from being taken advantage of due to their situation. While many investors ignore the rules, they do so at their peril: California District Attorneys and the Attorney General's Office are pursuing people who take unfair advantage of people in foreclosure.