How to Buy a Foreclosure?
Wondering how to buy a foreclosure? We have all heard that there can be great bargains and investment opportunities to be found by purchasing foreclosure properties. But many people are still unsure how to buy a foreclosure or where to find the best deals.
Late night TV infomercials are still just a packed with shows selling courses on how to make millions investing in real estate. And your local library is probably host to many books authored by these same characters telling you how to buy a foreclosure. Unfortunately the reality behind these products as witnessed by many whom have bought them is that they are too often full of outdated tactics and ideas. Yes the authors are making millions selling you their product. But how many are REALLY still making money in real estate? In general the strategies sold in these products about how to buy a foreclosure property are now obsolete or just down right illegal. You are much better off talking to a professional agent or investor who is up to date on the current market and knows how to buy a foreclosure right now and make money at it.
There are different ways how to buy a foreclosure, depending on what stage of the foreclosure process they are in. There are generally three categories of foreclosure. 1. Pre-foreclosure, 2. Auction properties and 3. Bank owned foreclosures. Each phase offers slightly different opportunities, degrees of difficulty in buying them and percentages of discount that can be had. Every deal is different but in general pre-foreclosures offer the most flexibility to the buyer. Auctions can offer the biggest discounts. And bank owned properties offer the safety of clear title.
There are many sources to find lists of foreclosure properties these days. These range from local real estate agents, to the banks themselves to investors and wholesalers that can be found online or at local clubs. These sources will also no doubt be able to offer you more insight into how to buy a foreclosure.
Free Foreclosure Information
There have been many changes in the housing and mortgage markets over the past six years. From a huge boom with rapidly appreciating home prices and with no documentation loans offering 100% financing to a dramatic crash leading to the obliteration of mortgage lending as we knew it resulting in tighter guidelines. But this almost global catastrophe which has so severely changed the US economy and affected so many peoples lives has also given birth to many new businesses and real estate opportunities. The new landscape of the US housing market is dotted with homes in foreclosure. Most people have learned to become more frugal with their money, so whether you are a homeowner in danger of going into default yourself or you are an investor looking for deals you will be hunting for the best free foreclosure information.
Free foreclosure information can be found from a wide variety of source these days. If you are a homeowner and are in default or are in danger of falling behind on your mortgage obligations then getting quality free foreclosure information is essential. Certainly your mortgage lender is probably only concerned with getting money from you at this point and is likely not the best source for unbiased free foreclosure information. There are certainly a large number of loan modification companies in most states that offer to help you. Attorneys and loan modification companies may be a good source for some initial free foreclosure information, but if you want them to actually work on your behalf of course that is going to cost your money. And the results these companies can achieve are deeply disputed right now. Your best bet maybe to talk to a real estate professional who can give you free foreclosure information and let you know what your options might be or speak to a Housing Counselor. You can find local counselling agencies through the government at www.HUD.gov.
For investors looking for free foreclosure information it is easy to be over whelmed with the vast amount of information available on and offline. However if you are looking for quality, free foreclosure information that is really usable then you may want to consider keeping your research to only the best websites that provide plenty of data to back up their recommendations. And consider consulting other active real estate investors that are successfully investing for profit right now
Free Foreclosure Listings
Obviously the United States has seen a large surge in home foreclosure activity over the last couple years. When most people think of free foreclosure listings they associate it just with real estate investors looking for hot deals. But there are an even larger number of businesses and consumers that are looking at this information these days as well. For real estate investors this also makes contacting these potential prospects even more difficult as they are being bombarded with many sales calls. The boom of the loan modification industry has made data for homeowners that are delinquent on their payments or are in foreclosure in high demand. Then there are also mortgage companies and a growing number of debt settlement companies that target these homeowners to help them restructure their debt. And the rise in foreclosures has also resulted in many tenants being evicted or left hanging without their rental deposits, making it important for them to keep informed if their landlord is going into foreclosure.
There are a number of ways to search for information on homes in foreclosure. This includes; credit bureau data, public records, purchasing modeled lists from data companies and of course real estate agents. Many businesses are finding that they are now paying higher premium prices for this information. But real estate investors can still get free foreclosure listings from a variety of sources.
Free foreclosure listings of pre-foreclosures can be obtained from most real estate agents and brokerages. Most real estate offices should be able to provide you with their listings and free foreclosure listings from other companies advertised through the local MLS. Free foreclosure listings of REO or bank foreclosure properties can sometimes be found in local bank branches or on the bank's websites themselves. And approved real estate brokers can provide you with free foreclosure listings of HUD and government owned properties.
Free list foreclosures - Where to get them, and why are these properties good for investment?
For decades, nearly everyone knows-how real estate investors have known about these assets marketplace and have made huge profits by buying bank owned or REO (real estate owned) properties. However many new real estate speculators and amateur investors have overlooked these golden nuggets, specifically as they did not know where to find foreclosure search for free.
The recent global economic crises and credit crunch has resulted in getting bigger numbers of foreclosures making buying REO property easier. When a home in foreclosure goes to auction if there are no bids or the bank is the top bidder the asset reverts to being owned by the bank as well in some cases banks and lenders will make agreements with borrowers for possession of the assets to avoid further loses and overheads. In spite of this these properties become a liability to the banks and they will want to unload them as fast as possible.
So how do you find a free list of foreclosures? With the changes in the housing marketplace, many real estate agents have gotten into this niche and have started focusing on foreclosure listings and sales. Most of these REO properties or assets have to be listed in the MLS and a local Realtor should be capable to provide you a foreclosure free search in your area. Moreover the housing crash has spawned many websites advertising such lists and information, unfortunately many of these sites are developed just to increase revenue from third party advertising and membership fees and will ask you to pay to join.
The lenders themselves will frequently provide free listing of foreclosures or even have them posted in your local area. Some banks market these properties themselves and you may possibly be able to send your bids and offers or negotiate directly with their loss mitigation division. Other banks with listing, deals via established real estate brokerages who will act out on their behalf. This has created a problem in the past when the overall housing marketplace was hotter and these agents would make these 'pocket listings' meaning they would not advertise these to every one of the general community or who would hold off offers from other agents so that they could collect more commissions themselves. This was clearly damaging and not in the banks best interest which has now driven changes and opened up these lenders to providing a free listing of bank owned foreclosures.
After a foreclosed property is taken back by the bank they will care for their interest by clearing the title of other liens and issues thereby you can be guaranteed of getting obvious title when you take possession of the property. These properties are as well ordinarily available and vacant as the foreclosure procedure has been finished and the earlier owner has evicted. This definitely can make your investment flow smoother than if you have to deal with an irritated tenant yourself. The downside though can be that being vacant these homes can sometimes have been gutted by the previous resident who was mad at losing their house or by vandals. So get your free list foreclosures and get hunting.