What tools you need for a successful foreclosure hunt
If you are interested in buying foreclosures, then you are in luck. There is a wide-selection of properties to choose from, and finding quality foreclosure listings has never been easier. Today, you can easily find foreclosures using a variety of resources such as public records, newspapers, websites, real estate agents, and lending institutions. The best part is that many of these resources are free or reasonably priced.
Public Records
At some stage in the foreclosure process, notices must be recorded in the County Recorder’s Office. Once recorded, the information becomes a matter of public record and is available to any interested party, free of charge. When you search county records, look for documents or entries titled Notice of Default (NOD), Lis Pendens or Notice of Sale. You can find information regarding the property’s address, original loan and default amount by locating the Notice of Default or Lis Pendens. This information is extremely helpful in determining what you are willing to offer for the property.
Newspapers
All state laws regarding the handling of foreclosures require that a public notice of auction be published in a newspaper for a specific amount of time. A quick search of the Public Notice section of your local papers or business journals should provide you with a list of foreclosure homes.
Websites
The Internet has made it easier and faster to search for foreclosure listings. Many newspapers post public notices online, as do a few county recorder offices. Websites such as ForeclosedHomes.com are a good one-stop resource for foreclosure information. In addition to accessing a nationwide database of foreclosure listings (including bank foreclosures), you can find property reports and state-specific information on foreclosure laws.
Lending Institutions
One of the easiest ways to find bank foreclosure listings is to pick up the phone and contact local banks. Most lenders will provide you with a current listing for free. However, it may initially take you time to find the right contact person.
Real Estate Agents
Real estate agents and/or brokers are a good source for finding foreclosure homes. 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. Call around and find out which real estate agents are handling bank foreclosures in your area.
Home Evaluation Tools
Once you have found a foreclosure property, you are going to have to determine the homes value and how much you should offer for the home. Again, there are a variety of tools at your disposal to assist you. It is important to remember that market value evaluation tools are often subjective, and can vary from provider to provider. You might find that property values rise or fall within a small radius due to property condition, slow provider updates and other conditions, so proceed with caution. It may be beneficial to use more than one of these tools to form a better picture of what the true market value of a property might be.
Realtors
Realtors can provide a report of comparable sales (comps) for properties recently sold in the same neighborhood. The reports will often offer you insights into what properties failed to sell within the last few months, along with their list prices. Another advantage that real estate agents have is that they are familiar with the local market conditions and can tell you how that particular market is currently performing and what a good offering price might be.
Online
There are several online home evaluation tools such as Homeadvisor.com, Housevalues.com, Realestate.com, Homegain.com and Zillow.com that can provide you with information on recent properties sold within the area. Some of these services are provided free of charge, while others will charge a monthly or per report fee. Shop around to find the one that will suit your needs.
Finding a good foreclosure home is possible. Armed with the right tools, a little research and preparation, add a dose of patience and persistence, you can find the property that meet your needs.