Can foreclosures houses work for wholesaling?

Question

I am having trouble finding a houses, any website anyone recommends? Also, I found foreclosures homes, if I wanted to wholesale would those work?

Patricia Steiner · Answer

Most likely, you would have to buy the foreclosed property, actually close on it, and then resell it.  The liability that lenders have on the sale of foreclosed properties and pursuing any deficiency balance with the borrower has increased significantly in recent years.  As a result, the sale process is highly scrutinized and assignable contracts are not acceptable.

Marquita Shines · Answer

@Ehsan Rishat I just bought a Absentee-Owner list from Listsource today and I filtered out Trustee-Owned properties when I searched.  Now that I have the list, the report says they are all REOs.  How can I filter to get Absentee-Owners that are not bank-owned?

Ehsan Rishat · Answer

@Carrington Crutcher All properties can be subject to wholesaling. However, you need to make sure you work out the legalities of wholesaling in your state. Laws on this subject vary in different states. Unlicensed wholesaling is illegal in many states (I assume you don't have a real estate license).

Generating leads can be done pretty easily using websites like ListSource where you can find lists according to criterias you specifically desire.

If you are looking for the type of lists which have motivated sellers you can try: Absentee owners, pre-foreclosure, tax delinquent, divorce, probate, Code Violations, inherited, expired listing.

Good Luck! Let me know if this helps!

John Thedford · Answer

Sure you can. BUY, then resell.

Michael Noto · Answer

@Carrington Crutcher In most bank addendums for foreclosure transactions I am involved in they specifically state that the contract cannot be assigned, not sure if that is what your strategy would be or not.

Daray Olaleye · Answer

@Carrington Crutcher

When you say foreclosure homes, I assume you are speaking of homes in the foreclosure process but haven't yet been foreclosed. We like to call those pre-foreclosures and it is a great source for wholesaling. I definitely recommend you start there if you're having trouble.

Joseph Back · Answer

@Carrington Crutcher Depends on if you are talking about REOs or properties that are in the process of foreclosure but have not been auctioned off yet. You can wholesale the property all the way up to the day it sells at auction. After that, if the banks buys it back and then lists it as REO you are most likely going to have to close on it.

Carrington Crutcher · Answer

@Daray Olaleye Thank you, this helps! Other than pre-foreclosures, any other great sources for wholesaling?

Can foreclosures houses work for wholesaling?

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