There Is A Lot Out There On Foreclosures

Category: Finance, Real Estate.

Every time you turn around, the word" foreclosure" is all over the news!

There is a lot out there on foreclosures. So, if you re a homebuyer looking to buy a foreclosure property or an investor wanting to learn how to invest in foreclosure property, then you re timing couldn t be better! From how to stop your own foreclosure to how to" get the deed" . But. none of that matters unless you know how to FIND FORECLOSURES. You could probably go to a different foreclosure seminar every other night for a month to learn the tips, tricks and tactics. It doesn t matter how you negotiate with homeowners, what you say to the banks, or what paperwork you need to have if you don t find the foreclosures first.

This is NOT the same as" pre- foreclosure" . We define 4 marketing stages during which you can find foreclosures: "pre" pre- foreclosure, pre- foreclosure, bank owned real, foreclosure auction property( after the foreclosure) "pre" pre- foreclosure: This is the one that most people are confused about! This is BEFORE the foreclosure ever even begins. Properties you can find at this stage are" gold" because the homeowners aren t yet being bombarded by foreclosure investors. It s the time during which the homeowner realized he/ she is going to be late on payments- or is even a couple of months behind- and the point at which the bank starts the formal foreclosure process. Finding pre- foreclosure sellers here takes a little more creativity and ingenuity. Pre- foreclosure: This is the" hotspot" for investors.

This is where marketing and advertising play a huge role as well as networking. This is when people are getting hundreds of letters and postcards from hungry foreclosure investors. The key to finding foreclosure properties at this stage is consistency and persistence. This stage can last several weeks to several months or even longer. There are a number of strategies that you can use at this time ranging from door knocking to a sequential foreclosure mailing and anything in between. This is not recommended for home buyers simply looking for a great deal on a foreclosure property nor do we recommend it for an investor unless you are quite advanced and have a good team working with you because there are a lot of considerations that could wind up costing you money if you re not careful.

Foreclosure: We define this stage as the" auction" ; the actual sale at the courthouse. Real Estate Owned( Bank Owned) Foreclosures: Foreclosure properties reach this stage when nobody purchases the home during the first 3 phases and the bank takes it back. You will need a good Realtor that knows how to handle the banks to help you here, but you can find foreclosure deals well below market value here. There are lots of good deals to be had once the bank takes back the foreclosed property. Each of these 4 stages of provides great opportunities for finding foreclosures. Depending on where they are in the foreclosure process will determine how you will locate the sellers, how you will market to them, and how you negotiate the deal.