How do you really buy foreclosures?

Question

I see listings on Trulia etc for my area that are listed as in foreclosure.  I've tried even to sign up for 30 day trials of the foreclosure websites.  How do you really buy a foreclosure and get info on them etc?  I've searched the forums and didn't see anything specific on this.  If there is existing articles, etc. from bigger pockets a nudge in that direction would be appreciated.

James Mudd · Answer

Hire a realtor...it's FREE to you...and the bank sure as hell isn't going to give you the difference...they have it built into the budget, so get your monies worth...!!!

Rick H. · Answer

A simple question with, perhaps, dozens of answers.

Here are a few things to consider: are you trying to buy equity at a discount or cash flow at a discount?  Otherwise, chasing bargains may not be as good a value as focusing on the right type property.

The next thing I suggest you consider is whether you're up to buying directly from distressed owners or not.  If you are, there can be a huge learning curve to keep yourself out of financial and legal trouble, let alone finding a true bargain. Much of the education tends to be from subsequent deals although it's pretty easy to get a big sorry education on your first.

Using a real estate agent or broker is no guaranty of getting a good buy, either.

Another way to look at foreclosures is the method of buying: either from a distressed property owner, at the foreclosure sale, or as an REO from a lender who has completed the foreclosure and is the new record owner.

No doubt other will chime in and give you advice here. Remember what you paid for that advice and consider if those that want you help you stand to benefit.

I started working foreclosure in 1978 and still enjoy this area of investing, albeit a much tighter niche (foreclosures concerning deceased owners). Many people aren't trying to invest but merely want to find a "good deal." Which one are you?

John Moore · Answer

If you utilize a Realtor they can give you not only a list of the foreclosures they can get you into the houses so you can evaluate them.  When you buy a foreclosure the seller is paying the real estate commission.  Establish a relationship with a realtor and they will give you a heads up when one is posted that they feel you would be interested in.  There are websites that advertise foreclosures, since most are listed on the multi list why do unnecessary work.  Food for thought.

How do you really buy foreclosures?

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