Here are a few suggestions for how real estate investors can find properties that are in foreclosure or at risk of foreclosure:
- Check public foreclosure notices in newspapers, online databases, or at county courthouses. These notices are required to be published when a property enters the foreclosure process.
- Search property records for notices of default or lis pendens. A notice of default indicates the owner has missed mortgage payments. A lis pendens gives notice that legal action is pending against the property.
- Drive or walk around neighborhoods and look for signs of distress – unkempt properties, overgrown lawns, etc. Knock on doors to see if owners are present and interested in selling.
- Connect with real estate agents who specialize in foreclosed properties or short sales. They have access to listings before the general public.
- Consult services like RealtyTrac or Foreclosure.com that compile foreclosure data nationwide. You can search by region and property type.
- Attend auctions of foreclosed properties. These are often organized by banks or governments. Research rules and procedures in advance.
- Network with professionals like attorneys, mortgage brokers, title companies who may hear of properties in distress before they hit public listings.
The key is acting quickly when a possible deal surfaces, as competition is high. Make sure any information shared with friends is public and ethically obtained. Tread carefully to avoid exploiting vulnerable homeowners in difficult situations.
