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How to Buy Foreclosure Homes: Beginners Guide

How to Buy Foreclosure Homes: Beginners Guide

Along with giving you tips on how to buy foreclosure homes, this video explains the foreclosure process, the foreclosure laws and the benefits of buying a foreclosure to first-time homebuyers. Among these tips are pre-qualifying for a loan, hiring inspectors, running a title search and hiring a realtor.

Depending on your state, the foreclosure process is either judicial or non-judicial. Judicial foreclosures require the lender to sue the homeowner before it can foreclose on the house. In states that allow both foreclosures, the foreclosure process followed depends on whether the loan contains a power of sale clause.

The foreclosure process begins when the homeowner defaults on the loan and is issued a notice of default. Homeowners who fail to alleviate their default are issued a notice of sale, and their homes are listed at auction. Homes that do not sell at auction become bank owned as Real Estate Owned (REO) properties.

Auctions are very common and are great deals if homebuyers predetermine their maximum bids beforehand. Short sales help all parties involved by allowing homeowners to pay off their loans to their lenders. REOs allow the homebuyer to buy directly from the lender, and government REOs are usually well maintained.

How to Buy Foreclosure Homes

How to Buy Foreclosure Homes

Bank foreclosure listings are quickly becoming a hot commodity. Many real estate investors are starting to specialize in buying, and selling bank foreclosures and creating a real income in depressed real estate marketing. New home building and home sales are down at record levels, while the amount of foreclosures is quickly rising. Among this slide and increase dynamic, there is a large influx of new investors who are looking at bank foreclosure listings to find their next profit windfall.

The key to buying these properties going to foreclosure is to get the most recent listings and be able to make an offer, or prepare a winning bid before other investors can. Knowing where to find the most recent bank foreclosure listings will help you get a head start.

1. Banks or Lenders

Begin your search by talking with the local bank asset managers about the latest homes that have gone into foreclosure proceedings. Usually they will be more than willing to accommodate you in your search as they want to sell these properties quickly. The most recent Notices Of Sale will be listed here.

2. Local Clerk’s Office

Before, or immediately after, a Notice of Default is presented to a home owner, a copy must be filed in the County Clerk’s office. These are placed in the public records and are free for anyone to look at. You can find the most recent bank foreclosure listings here and can immediately go to the property to check it out.

3. Real Estate Agents

While usually on the front line of homes, some real estate agents can have very new listings for bank foreclosures. Locate the Realtors who specialize in foreclosures. They will have the most recent listings. They might be a day or two old, but they will be also ready to give you information on the home and help you in making your offer.