How to Find A Foreclosure
According to the first-quarter 2008 National Delinquency survey released by the MBA more than 5% of all loans were at least 60 days delinquent or in foreclosure compared to just over 3% the year before. When buyers have the upper hand in negotiations, the market is said to be a buyers market. By all indicators the real estate market is currently a buyers market. If you are interested in buying a foreclosed home this may be the best time. There are a wide variety of foreclosed homes available and finding foreclosures has never been easier.
Foreclosure Home Listings Sources
Today you can easily find foreclosures using a variety of resources such as public records, newspapers, registry publications, the Internet, lending institutions, and real estate agents.
Public Records
An excellent source for foreclosure information is the county courthouse. Real estate transactions are recorded in the county where the property is located and are generally handled by the county clerk or county recorder’s office. Certain legal notices, such as Notice of Default (NOD), Lis Pendens (LP), or Notice of Sale are required by law to be filed at the courthouse. These notices signal the beginning of a foreclosure action and make the general public aware that legal action may be pending. Become comfortable researching and reading public records and other official documents. You may end up dealing with lots of public records and the more comfortable you become with these materials, the more efficient and successful you will be. Through public records you should have access to complete information regarding the foreclosed properties available in your area. You will be able to obtain property addresses, owners’ names, and the original loan and default amounts.
Newspapers Foreclosure Announcements
Information obtained from public notices is one of the best sources for finding foreclosed properties. Publishing of legal notices is dictated by State law or by the court overseeing the foreclosure, specifically the number of public advertising notices required and the dates by which they must appear before foreclosure sale. Usually the notice must appear in a general circulation newspaper, or the local paper with the largest circulation. A quick search of the Public Notice section of your local papers or business journals should provide a list of foreclosure homes. Newspapers can provide a wealth of information on local foreclosures. Banks, real estate agents, or homeowners may advertise foreclosed properties in default. Although large auction companies and government agencies may advertise their auction information throughout the newspaper the best place to look is the classified section.
Registry Publications
Although expensive you can subscribe to an authorized area or statewide registry publication that weekly or periodically publishes legal summaries including foreclosures. Address, name of borrower, lien holder, and the county book and page number generally identify properties where the mortgage instrument can be found. Auction sale dates and times are also provided. These publications are available in print, and are increasingly available online or as electronic newsletters.
Finding Foreclosure Listings Online
Internet provides a goldmine of information and resources related to buying foreclosures. This has made searching for foreclosure listings much easier and faster. Public records can be found online. Newspapers often post their public notices section online and some courthouses and other public offices provide access to their records through websites. Some of the best foreclosure information can be found using foreclosure listing services. The type of listing service you need depends on the type of foreclosure you are interested in buying. If you are looking for pre-foreclosures you want daily updates on loans going into default. If you are looking to buy a home at auction you need a service that provides an accurate listing of foreclosure auctions. If unsure which type of foreclosure you are interested in websites such, as www.foreclosedhomes.com are a good one- stop resource for information on buying foreclosures. In addition to accessing a nationwide database of foreclosure listings, including bank foreclosures, you can find property reports and state-specific information on the foreclosure process.
Lending Institutions
When buying bank owned properties (REO’s) a good place to start is with banks or lending institutions. Most banks and lending institutions have an REO officer or special assets officer. Larger banks may have an entire division or department that handles foreclosed properties. These are the people to contact for information on REO. Once you contact the bank, many lenders will provide you with a current listing for free. Sometimes banks or mortgage companies enlist the help of asset management companies to handle their foreclosed properties. As the name implies, these are companies that specialize in the management and sale of assets such as residential property. A quick online search turns up many websites for large asset management groups.
Real Estate Agents
Real estate agents and brokers are another good source for finding foreclosure homes. They have valuable information and insight regarding the local housing market. In many cases bank foreclosures are handled through real estate agents, as most banks do not have the time needed to push for a sale. Look for real estate agents with foreclosure related experience and expertise. When contacting real estate agents make it clear that you are specifically interested in foreclosures.