Chalk up another one to the internet. Tracking down pending foreclosures used to require a lot of legwork. Now much of this information can be found online provided you know where to look. There are more sources than you may think and if this is a new venture for you…good timing!
A couple of tips:
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How quickly a foreclosed property becomes available for purchase depends on the type of Debt Instrument attached to the title.
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Mortgage: This is the best instrument in terms of providing time for working with the property owner and in providing the most information in the way of public records. Mortgage foreclosures are always done through the courts which can be a lengthy process.
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Deed of Trust (TD): A TD contains a power of sale clause not found in a mortgage instrument. This allows the lender to exercise their right to repossess collateral for a loan, in this case the property itself, without suing for it. By keeping it out of the courts, TD foreclosures can move stunningly fast. In addition, there are usually fewer public documents available for your research.
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Some states require lawsuits for all foreclosures regardless of instrument making TD foreclosures a little more accessible. Get familiar with the laws of the state you’re operating in to find out if this is a viable alternative. FindLaw.com is an excellent free resource. Look under State Resources/Primary Materials for statutes, codes, and administrative laws among others.
Locating Pre-foreclosures and Real Estate Owned (REO) Properties Online
One caveat about searching pending foreclosures online: you won’t necessarily be the first to see it. However, it is a fairly simple way to pick up information without going to the County Recorder’s Office and rifling through the files. And don’t forget there are agencies with already foreclosed properties they want to sell (REOs).
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Lender and Asset Management Websites: There may be a separate listing of REOs or REO realtors you can then contact. REO listings on lender websites have the advantage of showing information about the realtor involved.
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Other alternatives are listing services which are not free but can be useful for finding others to build relationships with. Look for Notice of Default, Notice of Trustee Sale, or Lis Pendens. Signing up for a free trial could net you some resources for later.
There are other resources, some with online databases, for finding foreclosures including the usual and not-so-usual suspects:
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Small Business Administration (SBA), Department of Treasury/IRS/Customs
In all cases, this is just the beginning of the opportunities. Each time you find a new agency, clerk, or other person to work with, concentrate on building a relationship because those will be your most valuable resources in the future. These are the people who know what is coming up and, if they like you, will probably tip you off about some lucrative deals.
* Image courtesy of FreeDigitalPhotos.net
