How to Be Notified of Potential Foreclosures

Foreclosure Homes

Since foreclosed properties are auctioned off, there is a potential for sales ranging between seven to 30 days to investors and interested buyers alike. Foreclosure homes are normally sold for 20 percent less than normal market value for similar homes, thus making them a great value.

Instructions

Finding Foreclosures

1. One of the best options to find free foreclosure listings is to visit a website such as Remax.com. When completing a free property search on this website, users are given an option of a foreclosure tab, which lists all available foreclosures in their market area.

   Another good web resource is the free foreclosure database. This website provides a database of foreclosure listings in a market area that a user can narrow down to state, county or city. The only drawback of this website is that some of the listings are out of date.

   Websites such as Realty Trac will help buyers find potential foreclosure listings. This service does charge consumers a moderate monthly fee to find pre-foreclosure listings in their market area, but also provides data about the amount owed on a mortgage, which provides insight on what the auction price will be during the foreclosure auction. However, when using a participating real estate agent, the agent can search foreclosure listings at no cost to the buyer.

2. Visit the county clerk's office for your immediate area. Since foreclosure auctions are held on the first Tuesday of each month in every state throughout the continental US, public notices are posted for potential foreclosures approximately 21 days prior to the sales date.

   All county clerk offices are required by law, no matter the state, to post foreclosure notices for the public, prior to the auction date. All foreclosure notices are posted at the courthouse, with the published auction date for public review prior to the sale.

3. Speak to a local real estate agent and ask her to review short sales in the area. The best way to find a real estate agent is by asking friends or family members who they have worked with and been happy with in the past. There are many real estate agents that are experts in foreclosure sales and will hold certifications, such as the CDPE (Certified Distressed Property Expert), which can make the purchase of a foreclosure more seamless for a buyer.

   Short sales will oftentimes wind up in the foreclosure process. A short sale is a type of transaction where the home owner is in default on his mortgage payments. At this juncture, the bank will negotiate with the home owner to sell the home "short" of what he owes. However, after six months, the bank can still foreclose if a successful short sale is not complete. This will transfer the property into the bank's ownership, and allow the bank to evict the home owner and resell the property as a foreclosure.

   Because of this, short sale properties can be evaluated and watched prior to the foreclosure auction. A real estate agent can provide up-to-date details on any and all short sales in a market area.

Tips & Warnings

• A redemption law allows for homeowners to make past-due payments or payments on tax liens and regain property rights to their home. In some states, homeowners can redeem a foreclosed property after a certain amount of time by paying the amount that they defaulted. The redemption period can be as long as a year in states like California, Ohio and Florida. In these circumstances, the foreclosed property might not go on the auction block for several weeks or months, allowing for the right of redemption period to expire.

References

• Foreclosure Auctions
• Free Foreclosure Database
• Will HAFA Boost Short Sales?