Every time you turn around, the word "foreclosure" is all over the news! 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!
There is a lot out there on foreclosures; from how to stop your own foreclosure to how to "get the deed". You could probably go to a different foreclosure seminar every other night for a month to learn the tips, tricks and tactics.
But... none of that matters unless you know how to FIND FORECLOSURES. 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.
We define 4 marketing stages during which you can find foreclosures: "pre" pre-foreclosure, pre-foreclosure, foreclosure auction, bank owned real property (after the foreclosure)
1. "pre" pre-foreclosure: This is the one that most people are confused about! This is NOT the same as "pre-foreclosure". This is BEFORE the foreclosure ever even begins. 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. Properties you can find at this stage are "gold" because the homeowners aren't yet being bombarded by foreclosure investors. Finding pre-foreclosure sellers here takes a little more creativity and ingenuity. This is where marketing and advertising play a huge role as well as networking.
2. Pre-foreclosure: This is the "hotspot" for investors. This is when people are getting hundreds of letters and postcards from hungry foreclosure investors. This stage can last several weeks to several months or even longer. The key to finding foreclosure properties at this stage is consistency and persistence. 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.
3. Foreclosure: We define this stage as the "auction"; the actual sale at the courthouse. 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.
4. 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. There are lots of good deals to be had once the bank takes back the foreclosed property. 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.
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.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Best way to obtain contract work with foreclosure mediation firms
By: Jennifer | 22-07-2008
I am currently pursuing a position or contract assignment with a foreclosure mediation firm. What is the best way to go about this task? Do these firms hire professionals on a contract basis to handle overload?
Free Hud and Fha property listings
By: Jack | 20-07-2008
Where can I find free FHA and HUD foreclosure lists of properties in my area open for bids?
Credit Damage
By: Cindy | 20-07-2008
what is more damaging to your credit report credit card lates or a foreclosure?
Eviction Notice Ca Foreclosure?
By: DPC | 19-07-2008
The home I rent is being auctioned off due to Foreclosure on the court house steps in California on July 22. I learned this thru a notice on my front door. Will I be given time to move after the auction? Or an eviction notice?
DPC
We have 2 houses.One in texas paid for,one in ...
By: EJ | 17-07-2008
We have 2 houses.One in texas paid for,one in california,not paid for. If we do a voluntary foreclosure on ca house can the lending bank attach a lein on any of our bank accounts such as ss checks,pensions and saving accounts/or other property such as vechiles or this house in texas which is paid for
Need to buy time don't have any money to move
By: Rennett | 17-07-2008
how to slow the process of foreclosure Ihave about one week to answer the judgement filed june16 sent out on June24 should i answer
Q&A Powered by:
More from Heather Seitz
Real Estate Investing: The Three Levels of Success
By: Heather Seitz | 24/08/2007 | Non-Fiction
In this article, you'll learn what you need to do in order to go from where you are right now in your real estate investing business to the next level. Discover the 3 levels of investing and how to get there faster, better and with less effort, even with the changing market.
5 Steps to Successful Real Estate Marketing
By: Heather Seitz | 22/05/2007 | Non-Fiction
The key to making money in real estate is finding motivated sellers. Until you learn to find the deals, you will always struggle. Learn the secrets that successful real estate marketers know.
Real Estate Investing Tips: 5 Things You Need to Know
By: Heather Seitz | 22/05/2007 | Non-Fiction
Real Estate investing is simple as long as you know what to do. In this article, you'll get 5 simple tips that will help you start investing in real estate. Whether you're brand new or a seasoned in real estate investor, this information will serve as a good primer or refresher.
Foreclosure Listings: 5 Tips to Finding Them Before Your Competition Does
By: Heather Seitz | 26/04/2007 | Non-Fiction
Foreclosures are the big buzz in real estate these days. Everyone seems to want to know where to find the "good deals". There are dozens of ways to find foreclosures. In this article, you'll discover 5 of the most common ways to find foreclosure properties before anyone else.
Marketing Your Seminar or Event
By: Heather Seitz | 26/02/2007 | Marketing
Learn 7 proven seminar marketing tactics to help get more butts in your seminar seats. This is the single most important thing to ensure a successful seminar, workshop or event.
5 Steps to Seminar Marketing
By: Heather Seitz | 08/02/2007 | Marketing
Learn the 5 Simple Steps to marketing and promoting your very own seminar, workshop or bootcamp and how to extract the most money each and every time.
Writing 
