How To Find Pre-Foreclosures
Posted on October 28, 2008
Filed Under Pre-Foreclosures Investing |
Finding a home in the pre-foreclosure process provides you with the best opportunity for profits in real estate investing. When you invest in pre-foreclosures, you can usually negotiate directly with the owner, who is motivated to sell for a bargain price. The best option is to find foreclosure properties before they go to public auction.
Finding pre-foreclosures is not difficult, but it does take action on your part. One fact working in your favor is that mortgage lenders are usually required by law to give public notice of default. Public notices are typically filed at the county courthouse and, in most cases, are published in the local newspaper.
Public notices of default provide an excellent starting point in your search for pre-foreclosures. You can find most of the information you need, including the lender’s name, the homeowner’s name, the amount owed and the interest rate. However, most public notices only have a legal description of the property and do not include a street address.
Starting with the information you have from the public notice, you can find the information you need at the county tax assessor’s office. County tax rolls are public information and anyone is allowed to review them. Take the homeowner’s name from the public notice and find it on the tax roll. Once you find their name, you can match up the property description with a street address.
Foreclosure services that provide you with a list of pre-foreclosure properties can be hired for a monthly fee. Some counties are making their foreclosure information available on the Internet.
In addition to the public legal notices, you may find leads to pre-foreclosures in the real estate ads. Look for advertisements that suggest a very motivated or even desperate seller. When you call for more information, you may find that foreclosure is imminent.
Finding and making an offer for federal foreclosures (FHA and VA loans) is more difficult but may be more profitable in the end. You’ll need to build a business relationship with a federally approved real estate broker.
Another excellent way to find pre-foreclosures is to place some classified ads of your own. Your ads should be clear and direct, with the word “foreclosure” featured prominently. Individuals who are looking for a way out of the foreclosure process will welcome the chance to consider your offer.
Investing in pre-foreclosures will give you the highest profit potential with the most financing options. All the information you need to get started is printed in the paper every day.
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3 Responses to “How To Find Pre-Foreclosures”
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How can I find an inexpensive programmer for pre-foreclosures and foreclosures on real estate? Website?
Can I utilize a program and NOT utilize a website?
The programs I've seen are for PAY and not free, which foreclosure listings are. If you are looking for an easy web site to utilize and get free listings, I suggest going to this site:
http://www.investingwithoutlosing.com
If you are looking for a good book on foreclosures so you know what to research and what dangers to look out for, I suggest this book:
Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa
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Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa
You probably know which area you want to purchase in already. The best way to do this is to go to the source. Go into the banks in the neighborhood that you are interested in and ask for their foreclosure lists. The banks want these properties off their books in the worst way. It really screws up their cash flow and they will go out of their way to help you purchase one of their foreclosures. In many instances they will come up with special loan packages just to help you out. Its a Win Win situation. The bank clears its books and you get a good home at a good price. Why talk to agents and middle men when you can go right to the source and do it yourself. Good luck.
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