Daily list of fresh pre-foreclosures, best approach?

Question

I have subscribed to our local paper that publishes upcoming foreclosures. It is alot of information, what would be the best way of gleaning good potential deals?

My approach now is to focus on the equity-heavy pre-foreclosures (by quickly comparing stated mortgage amount against tax value) and go door knocking. I'm not sure if this is a waste of time. I've had one guy seem annoyed like I was the 10th person to bother him with a "solution".

Most other people so far have said they've taken care of the problem, or are not interested.

I guess what I'm looking for is guidance in where my time will be best spent, as I can't literally can't keep up with all the newly fileds coming my way.

Valeriy S. · Answer

I know a few local investors that made off pretty well buying foreclosures at the court house and flipping them..but that was before that segment got overly saturated, especially with these hedge-fund backed buyers. I use the local publication to receive the sale notices, but they also publish hearing notices as well (which from what I understand is earlier in the foreclosure process than sale notices). Do you have any recommendations for which service might provide the substitution trustee filings information? And thanks for all your responses thus far, I appreciate you sharing your knowledge.

Chris Martin · Answer

As a foreclosure (courthouse) buyer, I tried but didn't have much success on the pre-foreclosure side of things. Try the '7 touches' concept and start with S-TR (Substitute Trustee) (Mecklenburg County Register of Deeds, pull up SUBSTITUTION TRUSTEE filings) filings rather than sale notices. The sale notice is late in the cycle. As a broker you miss a lot of opportunities. There is probably a cost effective service in Charlotte that provides such information.

Valeriy S. · Answer

Chris, I am flexible in the solution I can provide. Depending on the homeowner's situation and willingness, I would be able to buy them outright (to wholesale or flip), or would be willing to help them go through the short sale process, as I could earn a commission. In your experience, do you think these pre-foreclosure notices are worth focusing on?

Chris Martin · Answer

Not sure what you are offering them. What are you trying to do?