Foreclosed property listings are available from multiple sources.
Foreclosed homes are potentially among the most lucrative deals in real estate. Laws in most states prohibit lien holders from profiting on the sale of foreclosed properties other than recovering all invested money and costs for recouping the collateral. Real estate salespeople cherish knowing where and when these properties will be available for resale. Getting the listing for foreclosed properties is a prime source for potential gains.
Banks
Banks are the most frequent lenders of mortgage loans and thus are the most frequent holders of foreclosed properties. Real estate agents can get listings of foreclosed properties through a bank's mortgage loan or asset liquidation departments. Real estate agents, however, must repeat the process for every bank in the area in order to get a full listing of potential low-cost foreclosed properties.
County Records
Municipalities and counties maintain records of property listings, liens, tax records and transfers of titles between sellers and buyers. The offices also record when properties are foreclosed on by lenders. On regular schedules (daily, weekly, biweekly, monthly or quarterly), this jurisdictions make listings of property transactions available for real estate agents and other interested parties. Properties assumed by banks and lending institutions are more than likely foreclosed and soon to be available for resale.
Veterans Affairs
The U.S. Department of Veterans Affairs has a lending program going directly to qualified veterans. When a veteran defaults on the VA loan, the VA will foreclose and take possession of the property. The VA will also liquidate the property to retrieve its investment in the loan. Real estate agents can deal directly with VA property offices for listings of VA-owned foreclosed properties.
HUD
The U.S. Department of Housing and Urban Development has a loan guarantee program for eligible homeowners and also makes some direct loans to specific program participants. HUD will also foreclose and resell these properties in a manner similar to the VA. HUD has a fee-based subscription service by which real estate salespeople can gain access to HUD-owned foreclosed properties available for sale.
Internet Sources
There are many Internet services today that compile information from various sources--banks, government, VA, HUD, private lenders, and others--and make foreclosed property listings available to real estate agents. Although this one-stop source may seem like a great way to save time, there can be a problem of the timeliness of the listings. Salespeople who deal directly with sources for foreclosed property listings may get the jump on someone using an Internet source that can be out of date and has not incorporated newer foreclosed properties that have become available.
