Bank foreclosures: Where and how to find them?

Question

Where do you start? Any secrets?

Answer 1

The secret is that they aren't usually good deals. Check with your bank see if they have any. Banks want full price for houses they own.
If you can find a desperate homeowner who really thinks they will lose the house to the bank and they have equity they may sell you the house at less than it is worth. The trouble is they seldom think they will lose the house they are still hoping for a rescue.

Answer 2

There is a site that I've used that usually keeps fairly up to date info which is Foreclosures.com. There is a monthly cost involved. When the bank owns the property it's called an REO (Real Estate Owned). I think most people have the impression that when someone says foreclosure or bank owned, they think it's a great deal or a bargain. I've been working with foreclosures for the past 4 years and there are only a few truly good deals out of every 50 or so. You MUST know your market, what homes are selling for in the area & include the repair costs as well. I've found that the best deals out there are the pre-foreclosures, when you can work directly with the homeowner. It can be very frustrating and difficult to work with the homeowners, I mean let's face it, it is one of the hardest things to go through for anyone. If you are true and sincere in helping the homeowner by creating a winning solution for everyone then your hard work and persistance in the end will pay off.

Answer 3

Purchasing a foreclosed home for flipping depends on where in the procedure you decide that you want to purchase the property.

#1 Pre-foreclosure- The property owner has missed several months of payments and most likely is still living in the house. The lender might or might not have started foreclosure procedures on this individual.

You find a way to seek out and find these individuals. You offer them something for their equity in the property. Check for any repairs that might be needed. Find out how many months they are behind in monthly mortgage payments and the fees charged for being late. Check on the insurance policy as well as the taxes owed on the property, because if they have failed to make their monthly mortgage payments they have also failed to make their insurance and taxes. See if there are any other liens like a 2nd or mechanics lien.

Now check and see if you can find out how much the property is worth. If the money you have to give to the owner plus the back payments and fees as well as any repairs that need to make. What ever is left is your profit. If you think this is enough for you, then go ahead and complete the transaction by opening escrow or getting a closing agent as well as a title company.

#2 Sale or bid- at this point you must have in your possession and be able to prove it before you can make a bid cash, money order, cashier's check or a check drawn on a bank that do business in the state where the property is located. This amount must cover the minimum bid and that includes the mortgage balance any late fees and other funds the cost of any funds to cover the foreclosure.

#3 If no one get the property at the foreclosure sale, then you might find out the lender that now own the property, make a contract of what you are willing to pay them for the property, also send a check for 10% of the price you offered to pay for the property. You will need to tell them when and how you plan to come up with the rest of the funds to close the transaction.

#4 REO- Once it has become the bank's property they hire a local real estate broker to sell the property for as much as they can get for it on the open real estate market. If there is any damage the lender might take this into consideration when an offer comes in.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

The key question I would ask is why do you want a bank foreclosure? Most people think that bank foreclosures represent homes sold below market value. This is not always the case. The vast majority of bank foreclosures that have substantial equity never become available to the public. They are purchased by savvy real estate investors (and brokers) before they hit the market.

Nevertheless, to find any bank foreclosures, just ask your local real estate broker who has any experience with real estate investment properties and/or foreclosures. S/he will be happy to provide you with a list of foreclosures in your area. But, if you're looking for a "killer deal," be prepared to look at scores of properties before you find even one worth your time. Also, make sure you know what you're doing in terms of obtaining financing, calculating repair costs, etc.

Buying a investment real estate seems so "sexy" now in the media with all of the (staged) "reality" shows where people make gobs of money with real estate deals, and late-night infomercials pushing some real estate investing "system"; however, keep in mind that these shows are entertainment, and these "get rich quick" shows are advertised at 2am for a reason.

This isn't to say that you cannot make substantial money in a foreclosures, nor to discourage you. My biggest recommendation would be to find a knowledgable real estate broker, or successful real estate investor that you can "shadow." There isn't a magic pill to doing it. Making any substantial money in foreclosures takes time.

Answer 5

where can your find foreclosure home?
well there are three section of foreclosure
beginning. middle, ending.
1. N.O.D.- NOTICE OF DEFAULT.
2.THE AUCTION.
3.R.E.O- REAL ESTATE OWN

1.To find n.o.d. you can go to the your county assessor clerk office or go to one the web site and try them out first. the best ones that I know of for cali and nevada only countyrecordsresearch.com.
2.the auction go to newspapers.com or newspaper.com and look under classifieds for tustee sale(auction) and it will list the time, place and date.(2 weeek before it that place)
3.if the house dose not sale before or at the auction the lender will take the property and it called r.e.o.
Contact alot of lenders or a buyer agent and ask them you would like to buy these property off the them. you can get these house around 50 to 45% off market value.

and if you want all three of them at once just cantact your title company they should have everhting you need

Answer 6

banks