Locating Foreclosures And Pre-Forclosures
I am new to REI and already have my lender inplace that is willing to loan the monies for me to purchase investment properties. How do I go about locating foreclosures and pre-foreclosures? If someone could advise of any publications that may have a step-by-step or instructions in their own words. Thanks, Todd
purchase the newspapers that publishes hte legal notices for those counties you are interested in investing in. That is the earliest a foreclosure can legally be advertised (from what I've been told by top REI guys). If you want to find properties any earlier, you need to advertise so people come find YOU, or get referrals
BTW- I've heard most of those online sites are worthless, old info. The sites can only get the info once its published in the newspaper anyway, and by the time some of that info gets in the system its old news.
also: do a search on this forum, see what others say. This question gets posted a gazillion times, see what everyone is saying
[ Edited by godiva on Date 06/09/2004 ][ Edited by godiva on Date 06/09/2004 ]
In my county, the foreclosure auctions are posted in a display outside of the courthouse. Go up and take a look around. Find out who records foreclosures in your couthouse and if they "post" them.
Over the last two years, I have learned the best way to get preforeclosure leads is to advertise;
I place ads in the free shopping guides directed at people who are having mortgage problems or facing foreclosure. Something like: "MORTGAGE REPAIR - FORECLOSURE PREVENTION" or the like.
People CALL ME for help and we actually work with them and their lenders to repair the mortgage and we earn a reasonable fee for doing so.
When the mortgage cannot be fixed, I have a property lead to act on with a homeowner who trusts me to help them get out of the mess without losing their shirts.
Obviously, I can't buy every house that comes my way so I have developed, thanks to TCI, an investor network and I turn them on to the deals at a very reasonable rate.
This is a bit over-simplified but it works for me. Good Luck!
C- :-o
Here is the process I used/use.
Learn about the process
what is sub-debt, sr debt, liens
What will be discharged, etc.
bankruptcy issues
in larger markets (San Jose) there typically are local gurus that for a fee will present a 1 or so day course on all these and more.
Then I id a property. I use a subscription service that $199 for 3 mos. It send me a daily report of defaults filed, and a weekly list of notice of trustee sale NTS and autions.
If I like the property, I perfom the due diligence (DD) described above.
I try to buy the defaulted or a sub-debt, to try and "control" the the auction (see "2nd Allowed To Buyout 1st(may Be A State To State Issue"
Next I try a short sale
Then the court house steps.
No redemption rights in CA other than IRS liens