Best way to buy Pre-Foreclosure Properties

Realtor · Lancaster, PA · Member since 2022 · 9 posts · 5 votes

So if I go on my county sheriff's sale listings website, where all the foreclosure properties are listed, would it be best to reach out to the homeowner via text or call the listed attorney's office?

My goal would be to reach a purchase agreement before it would go to auction. Any additional input or recommendations would be greatly appreciated.

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Marty Boardman

Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes

The BEST way to reach a homeowner in foreclosure is to go knock on their door. Most owners in foreclosure are in denial, confused, apathetic or angry. Few of them respond to direct mail or text message. They most likely won't call the phone number on a bandit sign or search on Google either. You can definitely close deals days or even minutes prior to the auction with the right strategy. And as Mark mentioned, you'll need a good title company.

Best of luck Francesco!

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Matt M.
Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
4y
If you want it prior to auction, then you must go to the seller. I'm not sure on your State, but here in Colorado, you need a title company that can move quickly to help you close the deal.
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Marty Boardman
Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes
3y
The BEST way to reach a homeowner in foreclosure is to go knock on their door. Most owners in foreclosure are in denial, confused, apathetic or angry. Few of them respond to direct mail or text message. They most likely won't call the phone number on a bandit sign or search on Google either. You can definitely close deals days or even minutes prior to the auction with the right strategy. And as Mark mentioned, you'll need a good title company.
Best of luck Francesco!
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Before they hit the auction, get the list from the county and try to work subto
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Francesco Conigliaro
Make sure to understand your state laws as some states it is illegal to contact borrowers in foreclosure.
Also unlike a decade ago, there are many more challenges with targeting this group because homes now have equity and we (as lender owning the loan) see the majority of borrowers filing bankruptcy to keep the equity in their home and get back on a payment plan.
A decade ago everyone was upside down and there was a place they could move too. That is not the case today
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Marty Boardman
Real Estate Investor and Instructor · Gilbert, AZ · Member since 2010 · 303 posts · 332 votes
3y
Quote from @Chris Seveney:

@Francesco Conigliaro
Make sure to understand your state laws as some states it is illegal to contact borrowers in foreclosure.
Also unlike a decade ago, there are many more challenges with targeting this group because homes now have equity and we (as lender owning the loan) see the majority of borrowers filing bankruptcy to keep the equity in their home and get back on a payment plan.
A decade ago everyone was upside down and there was a place they could move too. That is not the case today
I'm curious Chris...in what states is it illegal for a real estate investor to contact a homeowner in foreclosure about buying their property?
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John Slater
Real Estate Coach · Riverside County, CA · Member since 2017 · 238 posts · 157 votes
3y
@Frank Conigliaro Agree with Marty.
Door-knocking can be tough, but very effective when you have a chance to stand in front of a seller in need. Remember, selling is a solution to avoid foreclosure if they have no other alternative. Most people will be trying to keep their homes first, so nurturing with these homeowners is important, but at the same time a keep it real conversation is sometimes needed when so close to a sale date.
I pushed out sale dates with signed sale agreements to give some breathing space with an extension, and have also wired funds for the default amount 2 days before a sale date to stop the foreclosure.
I don't use the sheriff's websites though, there's some great foreclosure tools out there to have all the info you need.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Marty Boardman
I know Maryland is one. I believe there are several others but it’s not in states we buy assets so we don’t stay up to speed on the laws in those states
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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Frank Conigliaro:

So if I go on my county sheriff's sale listings website, where all the foreclosure properties are listed, would it be best to reach out to the homeowner via text or call the listed attorney's office?
My goal would be to reach a purchase agreement before it would go to auction. Any additional input or recommendations would be greatly appreciated.

Must speak with the homeowner,
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Frank Conigliaro
Finding foreclosures can be rewarding, yielding diamonds in the rough or real-estate fortunes sold below market value. Here are some ways to find foreclosed homes.
1. Website and print publications. Foreclosed properties can be found on various websites and print publications, via online real estate searches, at bank offices and websites, and in local newspapers.
2. Multiple Listing Service (MLS). In local multiple listing services, the foreclosure status of a property may not be highlighted; the fact may only be stated in the property description.
3. Foreclosure websites. A more direct route is to go through websites that specialize in homes and properties in foreclosure, such as Fannie Mae’s HomePath.com.2 Some financial institutions such as Bank of America also have web search pages for foreclosed homes.3
4. Real estate professionals. Lenders increasingly are selling seized assets through real estate agents, so don’t hesitate to ask a real estate broker or agent for opportunities. Some real estate pros even specialize in foreclosure properties.
Read this article for more information https://www.investopedia.com/i...
Good luck!
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Joe Norman
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
3y
Quote from @Chris Seveney:

@Marty Boardman
I know Maryland is one. I believe there are several others but it’s not in states we buy assets so we don’t stay up to speed on the laws in those states

Its not "illegal" in Maryland, the investor just has to be sure to comply with the Protection of Homeowners in Foreclosure Act. From my lay-persons understanding you're okay to speak with the owner directly as long as you don't present yourself as a "foreclosure consultant" or some other nonsense (e.g., be clear about your intentions and the effects that the sale would have on the seller).
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Moris Reyes
Investor · Long Beach, CA · Member since 2017 · 29 posts · 9 votes
3y
@Francesco Conigliaro
Best way is to got directly to homeowners in foreclosure. Get the list of foreclosure from your title company. Find properties that are of interest, then pull a title report (info on the property), then go door knock the homeowner in foreclosure.
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