It’s definitely a problem everywhere, and it may affect your chances of making a pre-foreclosure successful, but I think there’s still a lot of potential there. It really depends on the situation, but you can always try to arrange a workout agreement with the lender. Sometimes, both the lender and borrower will be willing to take a hit in order to avoid the lengthy foreclosure process. I’m not sure about Minneapolis, but many states are lien theory states that require judicial foreclosure proceedings, and this can be a grind for anyone. In any case, there plenty of foreclosures happening right now, and there are many opportunities to do your part to help ease the burden for people in this difficult situation.

It seems like a bit of a balancing act. Selling through an agent will always take a bit longer than selling directly to an investor, so it depends on how much time pressure there is. Then there’s the tradeoff between price and time, because the lower price will sell more quickly; but once you calculate the commissions, the seller may not receive much more than he/she would with an investor. Ultimately, I think it comes down to the particular homeowner’s situation (how much equity, time, motivation, etc). A good agent and a good investor are both positive things for the seller.