preforeclosure

15 Replies

Hello

I need some advice on how to look for Preforeclosure houses.

Please help

Hello

Sheriff sales are the best way to look for pre foreclosures in my opinion. The only thing is that you will need to go in there with cash. 

The next best way is to get to the owner prior to the sheriff sale, but again the owner will need an incentive to strike a deal, which would again be to contact the bank with the owners authorization and perhaps give the owner a "cash for keys" incentive as well.

Everything else is MLS and wholesalers

Realtytrak for preforeclosures used to be a great site, but idk know if they are still around

Good luck

This post has been removed.

What states are you look at buying pre-foreclosures?

We have a few pre-foreclosures for sale.  You can check out our website at www.freedomfindersllc.com.  

I just joined realtytrac. $50 a month but definitely worth it since I live in Florida.

Hey Nic, I have some questions for you on realitytrac. I live in Kansas and wondering if Kansas has a search option. Also, do you know if they are refreshed daily?

Look up your city/county court website & find them free!

Sherriff sales would actually be at the very end of a foreclosure, not a pre- foreclosure.

Originally posted by @Kelly B. :

Look up your city/county court website & find them free!

What section would I look in?

Im really interested in the same topic. i want to to get in touch with owners of homes before others close on them.. does anyone have any creative strategies on getting in touch with homeowners (i.e. the address the tax forms are sent to etc.)

 I don't think pre-foreclosures is your best prospect for making money in this business - in Maryland - there are laws about getting involved with this type of deal.

  • The problem is - if they are not paying the bank - who else are they not paying and how many liens are on the property?
  • It is an emotional transaction - these folks are going to be put out of their home - where are they going - what's their problem -unemployment - sickness - drug addition - death in family ----incarceration?
  • They are going to have a "deficiency judgment" against them if it does not sell for the amount of the lien.
  • Their credit is going to be buggered up - they are going to have problems with buying anything that needs a credit rating.
  • They are not in a good place - the bank - lawyers and others want their money and they are being harassed (good reason to not answer the phone).
  • Now ---- here you come - you want to control some equity - you want to make some money - you may want to flip this property!
  • A problem you may experience is that you are setting yourself up for a potential law suit - did you take unfair advantage of these folks - were you honest in your disclosures - did you make too much money - will you have to go to court to explain to the judge what you did and why?

So the above is just some of my observation of foreclosures ---- you would always be better being arm's length with people who are about to lose their home, that is have an agent represent you. If you get an accepted contract - make sure you do a lien/judgment and title search - this will tell you what you are get and what trouble is in the "chain of title".

Here are some ideas -

  • Investigate - try to look at the property - inspect - chat with the sellers - get comps (but don't make an offer) what is their balance - who else do they owe?
  • Have your financing set up, a credit is best
  • Attend the auction sale at the court house steps - bid on the property up to the amount you feel comfortable with. Now you have the property - no emotional attachments - no outstanding liens - you get the property free and clear of judgment liens and you are not going to get sued!
  • If at the auction - the trustee rejects your high bid - go immediately to the trustee with a written cash offer. Trustee must submit it to the lender - who knows - you might get lucky.

Foreclosures can be profitable - but you are safer to buy at the auction - if you don't have the cash or a credit line - you should put together a joint ventures with friends or relatives - let them know what you are doing and how they can profit. Get them to give you a financial commitment (don't take the cash now - only when you have a great deal)

Make it a habit to attend these foreclosure auctions - even if you are not prepared to buy - you will get to know the players - who is there - what do they look for, how do they bid. Know your competition and how they react to you.

You too can become a PLAYER - but you've got to PLAY the game and know who your nemesis are.

Wishing you good luck with this real estate game - play to win and be always be vigilant for equity or cash opportunities.

ONLY MY OPINION ----

Charlie 

Thanks Charlie for the insight on Pre-Foreclosures.  I've been thinking hard on getting a Maryland Real Estate license.  Part of the reason is to go after pre-foreclosure prospects.  I will put that off based on your insights on pre-foreclosures.  Clearly, are could be major problems!!!!! Thus, foreclosures are the better prospect. I will not need a license for to go after foreclosures.

Originally posted by @Raymond Williams :

Thanks Charlie for the insight on Pre-Foreclosures.  I've been thinking hard on getting a Maryland Real Estate license.  Part of the reason is to go after pre-foreclosure prospects.  I will put that off based on your insights on pre-foreclosures.  Clearly, are could be major problems!!!!! Thus, foreclosures are the better prospect. I will not need a license for to go after foreclosures.

 Raymond you can not target or market to preforeclosures in the state of Maryland. Very severe penalties

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353), and Massachusetts (#9​0​5​2​3​4​6)
(301) 893-4635

Know the laws in the markets you do business in....... good idea.

The same ethic is true for people selling hot dogs on the corner or multi million dollar distressed properties.

It's top quality eats with a properly licensed cart or you fail.  You are truthful with others and deal with in the law, treading on your access to fast cash that can purchase distressed property, for a profit.

Keep it simple

Jim

Russell, if you have an Maryland state RE license then you can offer your professional services to provide a possible solution to their pre-foreclosure situation.  As they say in the ln the business, first address their pre-foreclosure problem wearing the RE agent "hat." Then as the RE Agent/Investor, you can offer to buy their house, after you fully disclosed about being both a licensed RE agent and investor.  Also, if only being an investor, you learn the pre-foreclosure victim has not first talked with an RE agent then the investor must stop his negotiation with that person. At this point, recommend to that person to talk first with an RE agent of his choice about selling their home as a solution to their pre-foreclosure situation.    

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