What is the best way to find foreclosures, REOs, and pre foreclosure homes near me?
An online platform is your key to unlocking foreclosure properties. Use one that is updated daily and has all types of foreclosures in one place, including listings from government agencies, Realtors, banks, asset managers, and auctions.
Online platforms are a cost-effective solution that is easy to use, saves time, and keeps you supplied with a continual flow of fresh foreclosure properties.
No direct mail marketing, no cold calling, or dealing with emotional homeowners.
No need to buy lists from third party companies with old data.
With Foreclosures.com you'll get the best properties first with access to Foreclosures, Shadow Inventory, Preforeclosures, Short Sales, Bank Owned, Bankruptcies, Tax liens, Sheriff Sales, and City-Owned. Search SFH, Multifamily, condos, mobile homes, and commercial property types by city or zip code.
Take a moment and do a quick search, enter a zip code and see how many foreclosure properties are in your area.
Online real estate platforms. Search the
platforms like Zillow, Trulia, Redfin, and Realtor.com. (to name the big
ones). But it's time-consuming, and most of the bank REO
properties are listed with a Realtor. It's easier to let an REO realtor
compile the list from the MLS and send the properties to you.
Government agencies. Freddie Mac, Fannie Mae, HUD, the Federal Housing Administration, Treasury Department, IRS, USDA/Rural Development Office, and Small Business Administration sell foreclosures. However, the properties are offered to homeowners first and the properties not sold are then available to investors, usually through an auction company or Realtor.
County public records. Every county courthouse gives access to a list of lis pendens, preforeclosures, and foreclosure properties. It's time-consuming and too much work searching public records and tracing all the information down. It's easier to use an online platform that also includes these records.
Legal publications. By the time the foreclosure notice has reached the online and printed legal publications, it is old and dated.
Auction companies. Online auctions are one of the best ways to find foreclosures and bank owned properties—register, search, do due diligence, bid, and close. However, before bidding, check for processing fees and other buyer costs that push the final price higher. Use national auction companies like Hudson & Marshall, Auction.com, Xome.com or Hubzu.com, and smaller local auction companies.
Asset Management companies. These are third-party companies that manage and maintain foreclosures and REOs through the sales process. National asset management companies will have a large selection of properties, and many will handle bulk REO packages. Bulk packages are the easiest, fastest, and most convenient way to build a portfolio overnight.
Banks. National and local banks and credit unions have foreclosures and real estate owned (REO) listings on their websites. However, it is time-consuming to visit multiple websites and sift through all the data. And most of the banks list the property with an REO Realtor or use an asset management company to dispose of their foreclosure properties. In some smaller cities, a local bank or credit union can be the best way to find foreclosures, provided that the bank holds and services their mortgages.
REO Realtor. It's a sweet and simple solution. Now, that may not be the way you take your coffee, but that is the best way to find foreclosures and bank owned properties. The REO realtor is a money-making machine; provide them with your buying criteria, motivate and set them on fire, I mean automatic, and let them do what they do best; find foreclosures and close the deal. Plus, the bank pays their commission.
Besides new and pocket listings, have your REO Realtor also send you a list from the MLS of foreclosure properties that have been on the market for over 90 days. All won't be great deals because of the number of problems and repairs, but some will produce a kicking profit margin. And because of the DOM (days on market), you'll be in a better position to negotiate the sales price.
Pro Tip: The best way to find foreclosures at a discounted price? Right before the Bank's end-of-month evaluations is the best time to submit your low-ball offers. Along with the end of the fiscal year and before major holidays.
Reo realtors have an "in" with the bank. The REO Realtor will also have continuous listings from these same banks in the future, so once you have established yourself as a power investor, you'll get the heads up on foreclosure properties before they officially hit the market.
The REO realtor is one of the best ways to find foreclosures, and they do all the work, tie up loose ends, and bring the bank, investor, title company, and the real estate deal together for a successful close.
Buy in as-is-condition. Make sure you are aware of the property's condition, and all necessary inspections have been performed.
Buy without contingencies. Do not ask for extensions or add phrases like, "Upon approval from my partner" or "upon approval of new zoning"
Buy with cash or hard money and submit the proper documents. It is best to have a hard money loan lined up with pre-approval and proof of funds letter to include with the contract. Always use the same name as on the pre-approval when you write the contract. Or have your cash in a bank, business, or retirement account that can be verified.
Escrow a large deposit, usually 10%. It shows that you are a serious buyer and have every intention of closing on the property.
Close quickly (5-10 days). Or as soon as the title company has the paperwork ready. Since the property is a foreclosure, most of the time the paperwork has already been processed and ready to close.
Pro tip: Realtors, banks, and mortgage companies use non-assignable contracts. Sometimes this can be an obstacle for investors who are flipping or wholesaling foreclosures and bank owned properties. Here are 4 legal maneuvers to work around non-assignable contracts.
Occasionally, some foreclosure properties will still have the owner or tenant living there. If this happens, the best solution for everyone is to offer them cash for keys. They're able to move out, the property is vacated in good condition, and you get fast access.
The best way to find foreclosures that have the highest potential for a large profit margin is to look for properties with deferred maintenance and in need of repairs. So make certain to complete all due diligence during the inspection period, usually between 3 and 5 days. However, most of the time, access will not be given for inspections or walk-through.
Title insurance. Even if you have to pay for it, make sure that the property will have title insurance. It's one of the cheapest forms of asset protection, and it gives peace of mind. Due to issues like undiscovered judgments, liens, Robo signing, and mistakes in the documentation the property's title could be clouded. That would create uncertainty about the buyer's rights of ownership. As long as the new owner (you) has title insurance, former owners can't seize the property back.
Redemption period. Check your state guidelines for the owner's rights for redemption and the reclaim period.
Bottom line- we believe the best way to find foreclosures and REOs is with an online platform like Foreclosures.com or with an REO Realtor.