Foreclosed Homes
Foreclosed home listings can be found in a variety of different ways. As the number of foreclosures has risen, more outlets have popped up. Obtaining the listings for these homes can be done from specialized sites on the Internet, your local county courthouse and banks.
Internet
You can find virtually anything on the Internet. Foreclosures are no different. There are many different foreclosure listing sites out there. Two of the best are propertyshark.com and foreclosures.com. These sites will provide you the necessary data needed in regard to the amount owed on the home and the current market value. These are the two monetary items that help determine if a property is worth taking a closer look. There is a cost to using both of these sites, but they also offer a free trial. This trial period gives you the opportunity to take the site for a test drive before spending any money.
County Courthouse
A complete listing of all the foreclosures in a given area can be obtained by visiting your county courthouse. There will also be a posting of when the next auction will be. A foreclosure auction is held by the county to get rid of excess foreclosed properties.
Banks
Homes foreclosed on by a bank are referred to as REOs or Real Estate Owned. This happens when a home owner stops paying their bank-financed mortgage payments. The bank steps in and repossesses the home. During this repossession period, the home owner can still sell their home. This is how many experienced home investors acquire properties at a good value. A situation like this is referred to as a pre-foreclosure sale.
Banks have no interest in owning real estate. They don't want to repossess homes as their business is lending money not selling real estate. Once a bank does take possession of the title to the property, they want to sell it as fast as possible. During the period of ownership, they are required to pay taxes and insurance just as a regular person would. Plus, too many foreclosures by a single bank are not a good situation as it displays poor lending decisions.
Most banks have an REO department that handles all of the properties. It is not uncommon for a savvy investor to buy a home for 50% of its market value. Many investors regard this as the best way to find good deals on foreclosures.
