I ran across my county's online file system and discovered they list mortgage foreclosures for properties in the county. My question is how do I best act upon these leads. If I contact the homeowners, would my negotiating points be that they can try to work out a shortsale between myself and the bank before heading to foreclosure or will the foreclosure process have already started and I'll just be to late to the party. Interested in hearing the best way to utilize this information.
Hi Kyle, Im very interested in the answer as well. How did you find the online list? Im having problems finding one for my area as a beginner.
No state is going to be the same in terms of accessing these files. You have to do investigating of your own. I would start be doing a basic google search or checking out your county's website. After that, try getting in touch with someone willing to share their knowledge with you at your courthouse. In my experience, a lot of people were not very helpful but it just took one person who was willing to explain things to me to show me how the system worked for my particular county.
Okay thanks Kyle.
Anyone with advice on this topic? Thanks!
I think you will find it is difficult to stop foreclosure proceeding short of a legal argument. Also, it may be safe to assume most home owners are financially savvy enough to explore their options before a foreclosure (short sale, deed in lieu, etc). if the aren't this savvy, they would probably be leery of anyone promising them an "out" given they hadn't considered this option. My best advice is to visit the courthouse sale and observe. You can bid if you have cash, if not, being present you can garner good information. Make note of the opening bid amount-- if the amount is a number with cents it is usually the total amount of encumbrances (mortgage). If the amount is a whole number it is typically the minimum amount the bank is willing to accept and has instructed the county in this regard. If the property goes unsold at auction, you can use this information to make an offer once the property reverts back to the bank and becomes an REO. You can leverage this "min price". I have used this strategy twice to buy homes significantly undervalued.
@Account Closed , so it sounds like there isn't much I can do at this point then in regards to the foreclosure, more or less a waste my time to pursue?
I have never been to courthouse auctions but always sounded like an interesting experience. Your suggestions about min price definitely make sense. Thanks for the input.
I'm not sure how foreclosures work in your area but, if you have backbone -go door knock. Simply, knock on the door, introduce yourself, say you represent investors you are interested in the property. Engage them in conversation, offer a solution to their problem, ect. There are articles on bp about the subject. But, instead of doing nothing its best to dedicated a couple of hours on a weekend and do something with the data. (Yes, I've done it!)
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