When rents = monthly mortgage payment, preforeclosures make sense. You take over the persons bank loan and if you are lucky, rent it back to him and you don’t have to pay a Realtor a dime. Plus you can have the worlds worst credit rating and not have to put anything down.

In this market, the only thing that you can compare buying preforeclosures to, is sliding down the sharp edge of a razor blade. Painful to say the least.