The Top 4 Proven Techniques To Locate And Buy Foreclosed Homes?
While the real estate economy is still in a volatile state and with home sales continuing to decline, there are some proven methods to locate bank foreclosed homes, commercial real estateand foreclosed land. Before we get into these proven methods of locating foreclosed property, we need to understand the 3 phases of foreclosure in which adistressed property can be exist.
Phase 1 - Pre-foreclosure
This one is pretty straight forward. While the term "pre-foreclosure" is not actually a legal term, it has become more of an industry term. Pre-foreclosure is as simple as it reads. A property that has not officially gone into foreclosure is typically given the term pre-foreclosure. This phase technically lasts from the time a property owner is late on their first payment, until the mortgage company actually files the foreclosure documents or Lis Pendens.
Phase 2 Foreclosure
The foreclosure phase is when the mortgage company actually files suit against the home owner for the remaining balance of the loan. The suit can technically be filed after missing one payment. However, most lenders file after a home owner is behind on their payments 90 to 120 days on average. How long it actually takes to foreclose on a property depends on a few factors. This factors included, but aren't limited too. The state in which the property is located, title issues, attempted loan modifications and work out programs with the owner and the case load of the foreclosure courts in the area where the property is located.
Phase 3 - Foreclosed
At this point the bank has successful filed suit against the owner and has taken title to the property. The property could possibly be labeled as a few different industry terms at this point. One would be bank foreclosed homes, foreclosedproperty, bank reo,
reo properties or reo real estate. There are others, but you get the point.
Ok now that we have all 3 phases out of the way and we understand the basics of them; let's jump right into the top 4 techniques.
Referrals Friends & Family
With times being the way they are. Unfortunately, everyone knows someone or someone who knows someone, who's going through some type of financial crisis. If you're in the position to help that person or couple, while creating a win-win situation then it's a good thing for all involved. Keep your ear open to opportunities within your family and inner circles. Spread the word via email, social networking sites and blogs that you're looking for distressed real estate. Many times you'll find deals before the foreclosure process starts which always make things easier for everyone.
Advertising
This technique works very well if done right. Basically what you're doing is placing classified and/or display ads in local new papers and online in the areas where you'd like to acquire
foreclosed property. Your ad should be direct and to the point as to pre-qualify your perspective callers. The property owners that are going to call you have probably talked to other investors already. So make sure all your T's are crossed and I"s dotted because you will need to move quickly if it's a property that you really want.
Public notices
Public notices are very interesting. At the time a foreclosure is filed, the law states that the filing has to be made public notice. So the attorneys for the banks and lenders will post the filing of foreclosure proceedings in local news papers and magazines. The good part for you is that it's done on a regular basis and there are usually more than a few foreclosure filings at one time. So you'll have access to a fresh list of pre-foreclosure properties to work from. The bad part is.Well its public notice. So everyone sees what you see and they move on them quickly. With that being said, this technique yields many possibilities. However, it's extremely competitive.
Working with a REO Broker/Agent
Well this technique is of course my favorite considering that I'm a real estate broker. However, honestly it's not always the best for the client. I say this because foreclosure listings are even more competitive than the previous technique. This is because the properties are listed in the MLS every broker that I know and don't know has the same client. This client is looking for a deal. They want reo properties that no one knows about.
The problem with that school of thought is that from the time the foreclosure process starts more than a few brokers know about the property. If the brokers know, then the broker's family, friends and clients know about the property. So it make it's very difficult to even actually get into a reo property these days. Let's not talk about attempting to get a contract accepted. Check another one of my articles on that subject" Bank Owned/ REO Properties - What's taking so long? Is my contract accepted?
Now you have the top 4 proven techniques to locate and buy foreclosed homes. Use these methods you be successful. Stay diligent and you can make it happen.
http://www.secretpropertyreport.com The Top 4 Proven Techniques To Locate And Buy Foreclosed Homes?
By: Kamau Telson
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