How to Find a House in Foreclosure

There are countless courses and informational seminars on how to buy houses in foreclosure. However, with all the focus on the legal documents, working with the homeowners and paying off the lender, a crucial detail gets lost in the shuffle: how to find a house in foreclosure in

Difficulty: Easy

Instructions

Things You'll Need:

• Local Sunday paper
• Highlighter
• Car
• Internet Access

How to Find a House in Foreclosure

1. 

   Check the newspaper.Read the Sunday classifieds and take note of properties that are "for sale by owner (FSBO)," "reduced for a quick sale," "motivated seller" or "desperate to move." Also highlight properties that offer owner financing. Not all of these homeowners will actually be facing foreclosure, but this is a good way to start filtering through likely properties and contacting a targeted group of leads.

2. 
   This house has an unmowed, overgrown lawn and appears vacant. This is a good indication that it may be in some stage of foreclosure.

   Drive through local neighborhoods. Keep an eye out for lawns that are uncut or unkempt, houses with peeling paint and homes that appear to be uninhabited or in general disrepair. These are all signs that a homeowner has lost interest or the ability to maintain a property.

3. Sign up for notifying emails.Many real estate investors will find and evaluate the deals on houses in foreclosure for you in exchange for a small cut of the profits when you close a deal. Most of these investors keep lists of contacts that they email when they come across a good deal. Do a search online for "real estate email list" and sign up for foreclosure notifications from investors.

4. 
   You can post this type of sign locally to solicit information.

   Promote yourself. Take out an ad in the local paper, start a postcard campaign or advertise online so that homeowners facing foreclosure can find you when they need someone to help them with their situation. If you make yourself available, houses in foreclosure will actually find you!

Tips & Warnings

• Remember, most leads will not lead to a real estate deal. The reason finding homeowners in foreclosure is so important is because you only need one deal to make a big difference in your finances. So, be persistent!
• Your finances and investing decisions are highly customized and personal issues. Be sure to consult financial and legal experts before entering real estate transactions.

[Ladybugblue]

on 8/7/2008 Thanks for the good advice!