BiggerPockets Foreclosure properties

Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes

I receive listing alerts for specific zip codes in my area from the foreclosure.com address. Has anyone every got a property through these and if so, what is the process? Is there a difference from ones that say bankruptcy opposed to preforclosure? Which ones would be easier to pursue (if any)?

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Jimmy Samaha

Staten Island, NY · Member since 2013 · 62 posts · 18 votes

I've bought foreclosures for years, here's how those alerts actually break down.

Preforeclosure just means the owner got served. The bank doesn't own it, the owner does. So there's no process through the site, you'd have to reach the owner yourself and buy it like any other deal before the sale date. Most of those owners are getting a pile of investor letters, so you're one of many. The ones that work have real equity and an owner who actually wants out.

Bankruptcy is a different animal. Once they file there's an automatic stay, the foreclosure stops, and you can't really buy it without the trustee and the court signing off. Those take months and a lot never come to market. Starting out I'd skip them.

Then there's the sheriff sale itself, which is cash, usually no inspection, and you need your own title search to know what liens survive. And REO, which is after the bank takes it back. Those get listed with an agent on the MLS, you can finance, inspect, and get clean title. Easiest by far, you just have more competition.

I'd focus on REO and the sheriff sale lists and treat the preforeclosure alerts as a research list. In Indiana the sheriff sale lists are posted free online (a lot of counties run them through SRI), and most of what those alert sites show comes from public court and county records anyway, so go straight to the source and it'll be more current.

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Dan Worth
Pittsburgh, Allegheny County · Member since 2026 · 28 posts · 10 votes
2d
@Mike York Alerts like that are pulled from court and bankruptcy filings and can lag, so I'd look up the actual case on the county docket to see where it stands before reaching out. With pre-foreclosure, the lender has filed but the owner still controls the sale, so you can work with them directly. A bankruptcy filing puts an automatic stay in place, and any sale usually has to go through the trustee or the court, which is slower and less predictable.
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Mike York
OP
Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
2d
@Dan Worth Thanks for clarifying the difference.
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- Dan Worth
  Pittsburgh, Allegheny County · Member since 2026 · 28 posts · 10 votes
  19h
  @Mike York Anytime. Happy to help if more questions come up.
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Jimmy Samaha
Staten Island, NY · Member since 2013 · 62 posts · 18 votes
1d
I've bought foreclosures for years, here's how those alerts actually break down.
Preforeclosure just means the owner got served. The bank doesn't own it, the owner does. So there's no process through the site, you'd have to reach the owner yourself and buy it like any other deal before the sale date. Most of those owners are getting a pile of investor letters, so you're one of many. The ones that work have real equity and an owner who actually wants out.
Bankruptcy is a different animal. Once they file there's an automatic stay, the foreclosure stops, and you can't really buy it without the trustee and the court signing off. Those take months and a lot never come to market. Starting out I'd skip them.
Then there's the sheriff sale itself, which is cash, usually no inspection, and you need your own title search to know what liens survive. And REO, which is after the bank takes it back. Those get listed with an agent on the MLS, you can finance, inspect, and get clean title. Easiest by far, you just have more competition.
I'd focus on REO and the sheriff sale lists and treat the preforeclosure alerts as a research list. In Indiana the sheriff sale lists are posted free online (a lot of counties run them through SRI), and most of what those alert sites show comes from public court and county records anyway, so go straight to the source and it'll be more current.
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Mike York
OP
Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
1d
@Jimmy Samaha Thank you Jimmy! Very helpful information!
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Ray Lin
Rental Property Investor · MS · Member since 2018 · 68 posts · 47 votes
1d
Foreclosure.com was not much help to me. I think they wanted me to sign up for their services. Depending on what state and county are your targets, I have been going directly to the law firms website. The law firm lists the address and auction date and time. Calling the law firms has been useless, but their websites are amazing. They even tell you what the check is payable to.
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Mike York
OP
Investor · Valparaiso, IN · Member since 2014 · 185 posts · 47 votes
1d
@Ray Lin Thak you, I will check that out.
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Matthew MorrowBusiness Member
Investor · PA - NY - NJ · Member since 2019 · 702 posts · 248 votes
9h
@Mike York one thing to keep in mind: with a lot of foreclosure and bankruptcy listings you can't always get inside before you buy, so you're taking on more unknowns. Budget for the worst-case rehab, run a title search, and know exactly what liens come with it. Pre-foreclosure is different. That's a homeowner who may still be open to a direct conversation, which is closer to how I found most of my early deals. Just my experience, but hopefully it gives you something to consider.
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John Leland
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 142 posts · 48 votes
4h
Quote from @Mike York:
I receive listing alerts for specific zip codes in my area from the foreclosure.com address. Has anyone every got a property through these and if so, what is the process? Is there a difference from ones that say bankruptcy opposed to preforclosure? Which ones would be easier to pursue (if any)?

Pre-foreclosures, Foreclosures, Auctions, REO are all different phases of the same property within the process. It differs state by state. Bankruptcy falls into "usually" either chapt 7 or chapt 13 and have their own set of rules that are federal (nationwide).

To understand the process, the if-then-else sequences ( various things can happen during foreclosure and during bankruptcy that affect the outcome) you have to either have a chart, someone who has been chasing foreclosures for a while or an attorney explain it to you.

It's the most complicated type of purchase to make and can be very profitable or it can be a can of worms.

I've seen properties take a year or two to get to the point where it would be a good deal to buy and I've seen properties where the process destroys any deal there may have been.

If you choose to chase Pre-foreclosures, Foreclosures, Auctions, REO timing and auctions determine whether it's a good choice. Most of the time "it's a wait and see" situation.

In any scenario, the owner has to be cooperative and they are usually in denial and the property usually has deferred maintenance.
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