Where to find foreclosure small multi-family opportunities

13 Replies

Hi BP!

I'm new to BP and relatively new to real estate - just bought my first buy-and-hold rental investment this past October. Connecticut and Brooklyn are my "backyards," but these residential markets took off last year so I'm now looking for pre-foreclosure and foreclosure opportunities with small multi-family (2-3 unit) properties. I've seen people mention on here that you can find foreclosure opps by looking at NOD/lis pendens lists, or lists of people late on their mortgage, but any recommendations on how this search might different for small multi-family? And anything specific to NY and CT, since it seems every state is different?

Really appreciate any and all thoughts!

Doug

@Doug Borchert  

Hey Doug, Congrats on the first property! 

If you go to do jud.ct.gov, you can search for pre-foreclosures and foreclosures by town. You can also see the scheduled sales. They are at the properties, on Saturdays, inspection starts at 10 and bidding starts at 12. 

Good luck!

@Ryan Allison From what I've been reading on the boards, no one can be evicted right now. However, I've gathered from others that one of the better strategies (in an attempt to avoid dealing with the banks) is to find buildings that are nearing the foreclosure stage, contact the owner directly, and try to strike a deal.

Again, I'm new to this, so does anyone who knows the space well have more concrete feedback on Ryan's answer and this approach?

@Mat O'Grady I've been keeping an eye on that list for awhile and the frustrating part is a few days before the actual auction, the auction would be cancelled. Is that usually because the owner of the property somehow found enough money to make a mortgage payment with the bank - and therefore delay the process a little bit longer? Or is it a matter of the bank itself not wanting to bring it to auction?

@Sin Hang Lai

Yeah, I think it is for those reasons and more; who really knows. I have found that you need to go through a lot of them to find a deal. It is definitely frustrating, but I know a few people who have gotten some good deals from it. If you are planning on going to any, call the lawyer who is selling the property to get the starting bid and see if it is cancelled. 

@Abbie Gibson I don't know of such a site for RI but in my experience foreclosure data aggregators tend to be somewhat out of date.

If you want the "latest and greatest" (freshest) data about upcoming foreclosures, you'll want to check out the legals section of the Providence Journal and town newspapers, as well as individual auctioneer websites for upcoming auctions.

Many auctions are cancelled at the last minute so you may want to check the auctioneer website to see if the auction is cancelled. But if you're asking for marketing purposes, then that won't matter as much for you.

You should also make sure you can research a property to determine if the mortgage being foreclosed is either 1) a first mortgage that is sufficiently high that there's little/no equity (and thus it might not be a property worth pursuing), or 2) a second mortgage that, when added to the first, is also so high that there's little/no equity.

I use ripropinfo.com for the tax assessor and land evidence record site links, to research that information for RI.