As a real estate investor, you have many different options when it comes to foreclosure investing. Some of which can be quite chaotic since pre-foreclosure investing is less stressful than taking it to the courthouse steps.

There are pros and cons regardless of how you decide to purchase property and each situation has their own separate circumstances which need to be considered.

If you are trying to close a deal in the pre-foreclosure stage, chances are you will be dealing with the homeowner. Some will be more than willing to have you help them get rid of their burden and others will fight you tooth and nail before surrendering. There are also some who absolutely will not budge no matter what you say or do. It's like the flip of a coin determining how a homeowner will react. It's pretty much a matter of how far you're willing to go with it.

Typically, if you're going to try to work a pre-foreclosure deal, you don't have much time. You'd better put your plan into action and move quickly.

If you plan to purchase a home at a bank auction, be prepared to have competition, especially if it's a great deal. Before you start the bidding, you may want to drive by the property and pull some comparisons of the neighborhood to give you an idea of what the home is worth.

One of the downsides of buying a home through a bank auction is that you don't really know the condition of the property. You could get what you think is a deal of a lifetime until you go in to discover that the homeowner demolished the property requiring some serious repairs. You may want to check on second mortgages as well before you start the bidding.

Regardless of how you plan to purchase your next property, the question of pre-foreclosure investing being less stressful pretty much depends on the homeowner and how receptive they are to you.