Investing in foreclosed properties is an excellent idea. At present, foreclosed properties are few as the national economy has picked up, and real estate investors have snapped up most of the properties in the market. However, there are still properties available for investment provided you know where to look.
Take a look at our top tips on finding foreclosures quickly for investment.
The US Department of Housing and Rural Development Website
The HUD website should be the first place to start. This comprehensive database has complete listings of all the foreclosed properties for sale in a particular area. The website also lists properties according to size and location.
The HUD offers discounted deals to teachers, community medical personnel, firefighters and military personnel. For some special non-profit organizations and local government organizations, the HUD also offers $1 homes fixer-uppers as affordable charity housing.
This site is the perfect guide for people who are just starting in the foreclosure investment market and it also lists foreclosed properties from the Department of Veterans, the IRS, the US Marshal’s Service, Fannie Mae, Freddie Mae and the Department of Agriculture.
Public Records
Foreclosure notices are present in the local County Recorder’s Office and the Clerk’s Office. Types of records that indicate a property is in foreclosure include a Notice of Default, The Lis Pendens, and the Notice of Sale. These same notices are published in local newspapers and periodicals. Local counties like Boulder County, Colorado also publish the notices on their website and buyers can find affordable properties by simply logging on. They are also encouraged to place bids on available properties online to speed up the sale process.
Foreclosure Databases
Foreclosure databases are updated daily with local and national foreclosure notices. However, most of these websites are paid websites. You will have to open an account on the website and search though the website to find affordable properties in a particular region. When you click on an interesting property, you have to open a paid account or a trial account to gain access to email information or contact information of the seller to start purchase proceedings.
Bank Websites
REO properties or real estate owned properties are bank-owned properties recovered from defaulting mortgage holders. Most of these properties sell quickly and the properties that are left are usually those that did not sell at auction. Start by checking the websites of national banks one-by-one and visit each house to evaluate the condition of the house. Most bank-owned properties have been empty for a long time and they may require considerable maintenance and repair.
The Simplest Approach
A DIY through a foreclosure agent is probably the best option. You can do the research yourself and find an area you are interested in for investment. Then hire a local agent who specializes in foreclosures to find properties in the area that are already in foreclosure on in pre-foreclosure. This may seem like a roundabout process but it is quite effective in finding affordable properties in one particular area. It also ensures that you can visit the houses and check the neighborhood before investing.
