Depending on where you live, different means exist to find home foreclosures. Before we dive into where to find foreclosures, let’s focus on why for a minute. With foreclosures up 97% year over year, there is a decent chance that you know of a foreclosure or two in your immediate neighborhood.

These foreclosures can have an astounding affect on the neighborhood in terms of property values, desirability, and in some cases crime rates. An abandoned property helps no one. A vacant property listed for sale is one thing, but a distressed untended property makes a different impact on a community. Whether you are an investor, or just a good neighbor, it is smart to know what is going on in your own back-yard (especially if you can make a buck in the process!).

The process of foreclosure is long and drawn out. The processes vary from bank to bank and from State to State. I will focus on what happens most of the time. The most common place to find a foreclosure publicly listed is in the newspapers under “Bank Owned” Real Estate. These properties are also known as REO (Real Estate Owned). These are properties that have already been foreclosed on, and court ordered back to the bank’s control due to non-payment of a promissory note. Typically, after the bank seizes the property, they will attempt to auction the property. If the property fails to sell at auction, then the bank will retain the property in their “inventory” and hire a Real Estate Company to sell their property. Banks lose a ton of money in this process. The cannot stand to have Real Estate Inventory. More likely than not, banks will be willing to deal on these properties.

The next place to find home foreclosures, or pre-foreclosures, is your county’s clerk of courts. Before the property has been seized by the bank, the foreclosure process must be completed. Part of this process is the bank communicating with the home-owner that the bank is “suing” them for breach of agreement. During this process, the bank request the court to publish a “lis pendens”. This “lis pendens” is notice that a lawsuit is pending. In many cases, this information is available on-line. In my county, this is searchable in the court databases. The down-side is that it is cumbersome and not intended for easy navigation be investors.

Another place to gain access to foreclosures, pre-foreclosures, and short sales is obvious….Real Estate Agents. A very good, full-time agent, will be privy to information that may be available to the public, but still hard to find. Many Real Estate brokerages subscribe to companies that compile lists of foreclosures, short sales, and bank owned properties. Finding a good agent with this level access could be very advantageous to an investor.

The final place to find access to foreclosures and short sales is the internet. There are many websites dedicated to offering foreclosure lists. Some offer one time memberships while others are monthly subscriptions. Most will offer a free first month. Some of these sites provide quality and timely information, while others are a scam. Do your diligence before subscribing to one of these services. The foreclosure mess is just getting started. The sub-prime fall-out has not even began to show it’s ugly face yet. In the next 24 months millions of loans are due to adjust and reset at a much higher rate. This will force hundred of thousands of people out of their homes. Be ready and be knowledgeable.

Feel free to contact me with any questions.

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