Real Estate Foreclosure

Real Estate Foreclosure:

How to Find Homes in Foreclosure

You can find homes in foreclosure in most markets. The foreclosure process occurs when a lender must take possession of a property due to nonpayment by a homeowner. The lender gains legal ownership of the property in the final stage of foreclosure. At that point, the lender has the legal right to sell the property to recoup some of the lost investment. Varieties of services provide listings of the latest foreclosure properties.

Steps

Speak with Real Estate Agents

1. Most banks utilize traditional real estate agents to sell the properties. These properties are placed on the market like any other. Investors and individual buyers will find foreclosures listed alongside other properties.
   
   • When a property is sold through a real estate agent, it is placed on the Multiple Listing Service, or MLS. Real estate agents can access this list of properties on behalf of buyers.
     
   • Ask a real estate agent to look for properties in foreclosure on the MLS or through private listings. Some real estate agents specialize in locating lucrative foreclosures for investors.
     
   • Note that bank-owned properties may not be listed publicly and may only be available to real estate agents.
     

Find Government Foreclosures

1. Government foreclosures are properties taken due to delinquent taxes, crime or for other reasons. This includes government foreclosures at the county, state and federal levels. Locating these properties is possible through a real estate agent or through various websites.
   
   • The U.S. Department of Housing and Urban Development provides links to several U.S. government organizations selling foreclosed real estate. This includes properties foreclosed on by HUD, the Department of Veterans Affairs, the IRS and the Small Business Administration. Properties are listed on the HUD.gov website.
     
   • Properties sold by the government outside the United States may be listed on state websites or on third-party websites.
     

Know the Local Market

1. Investors can find houses in foreclosure within the local market by monitoring public records and news reports. Many governments require full disclosure of properties in foreclosure in newsprint.
   
   • Public record searches may be 30-to-60 days behind in some situations.
     
   • Local properties listed as for sale may, in fact, be foreclosures. Many are listed through traditional means with a local real estate agent.
     
2. Auction listings are another great local resource. Many government websites or government offices provide notices of area auctions of real estate. Contact local officials for more information.
   

Utilize Online Resources

1. Many third-party websites list foreclosure properties. These websites may be for-profit resources.
   
   • Note how often the website is updated. If not updated daily, the newest foreclosure properties may not be listed.
     
2. Serious investors may also want to network with other investors online about foreclosure opportunities. Networking can be one of the best routes to finding the most lucrative foreclosures.
   

Tips

• Foreclosure properties may also have a listing as short sale or real estate owned (REO) properties. Though slightly different, these properties are often lumped together in foreclosure listings.
  
• Learn about and avoid foreclosure frauds. Some companies may require payment to view properties in foreclosure or private listings.