A Closer Look at Foreclosure Listing Sources
Motivational speaker and self-help author, Jim Rohn coined the phrase, “Work Smarter, Not Harder”. This phrase could serve as a mantra for many things in life, but it is definitely true for foreclosure investing, particularly when it comes to searching for just the right foreclosure. It is true that with so many potential foreclosure listing resources available you are likely to have quite a selection from which to choose, but do you necessarily have the time, money and energy to search through multiple foreclosure resources every day? Chances are probably not. So if you don’t, what do you do? You decide which resources are likely to generate the best foreclosure listings for your needs.
To assist you in making that determination, we have put together a brief list of pros and cons associated with the most popular foreclosure listing resources:
Newspapers/Print Publications
At some point in the process, a public notice announcing that a property has entered foreclosure must be published in a newspaper or other printed publication for a specific period of time. By checking the Public Notice section of your local paper or business journal, you can quickly find a listing of potential foreclosure homes.
Pros: free or low cost option; available to the general public.
Cons: these advertisements do not provide a lot of detailed information on the property and often do not offer much selection, particularly in terms of bank foreclosure offerings.
Public Records/County Courthouse
Notices during the foreclosure process are generally recorded at either the County Clerk or County Recorder's Office. This information becomes public knowledge and is available to anyone requesting it. By visiting the County Clerk or Recorder’s office, you can search for any Notice of Default (NOD), Lis Pendens or Notice of Sale record.
Pros: free, available to the general public; may find foreclosure listings that have not been posted by online foreclosure services yet.
Cons: time consuming to research and request additional information on each potential foreclosure; often you just receive a foreclosure listing with the barest of information, you need to then place a request that a report be run on each foreclosure home of interest.
Lending Institutions
Simply picking up the phone and contacting local banks is often one of the simplest ways to find bank foreclosure listings in your area.
Pros: most lenders will provide you with a current listing for free; develop a solid relationship with your banker/mortgage lender and they could potentially call you in the future with “hot foreclosure properties”.
Cons: initially it can take you some time in terms of locating the right contact person for each lender; it can take months if not longer to establish relationships that will prove fruitful in the future in terms of your foreclosure investing goals.
Real Estate Agents/Brokers
These professionals are another good source for locating foreclosure homes. Banks often like to use agents/brokers to handle the marketing and sale of a foreclosure property. Contact agents/brokers in your area to see who handles bank foreclosure listings.
Pros: most will give you a current foreclosure listing for free; long term relationships with agents/brokers provide you with valuable information and support.
Cons: takes time to build a productive relationship; if you are not serious about buying, they may not be receptive to providing you with foreclosure reports week after week.
Websites
Type in foreclosures in any search engine, and you are flooded with websites offering foreclosure listing services. How do you know which one to choose? Short answer is you need to compare the products and services they offer. The best way to do this is by either running a free search or signing up for a free trial period. Look closely at not just how many foreclosure listings they offer, but how many are available in your area. Are the listings up-to-date? Where do they get their listings from? Do they depend on one or multiple providers? Finally, is the website easy to navigate, user-friendly and provide customer service support should you run into problem? A prime example of a foreclosure listing website that provides all these features and more is www.foreclosedhomes.com. With their free 7 day trial period, you can easily compare their service for yourself.
Pros: time saver; offers a huge selection of bank REO, HUD and For Sale By Owner foreclosures from multiple providers; provide detailed information on the property itself.
Cons: many quality foreclosure listing services charge a small membership fee.