Information Sources

The last step left to do after you have made you decision to invest in foreclosures is finding the right foreclosures. There are many sources to find properties that are in foreclosure. The two major categories are bank owned real estate and government foreclosures.

There are a number of sources you might consult to learn more about government foreclosures. The Department of Veterans Affairs is one starting point, as is the Department of Housing and Urban Development. You might also look into the General Services Administration and see if the Office of Property Disposal has any listings. Other resources include the Treasury, Small Business Administration and Agricultural Departments, law enforcement sources such as the Marshals Service, and banking sources such as Fannie Mae and the FDIC.

Many bank REO properties are listed online, under the category of REO listings, and many directories exist that can help you find these websites. You can also identify these properties by asking an asset management company for input. This company will help the banks to sell off foreclosed homes, and may even have a useful website of its own.

It is also very important to look at pre-foreclosures as a possible source for your investments. To be able to capitalize on this option you really need to have a decent understanding of the foreclosure process. But at various stages of the process notices are recorded with the County Clerk and these public records may be searched by anyone which gives you the possibility of locating properties that are heading towards foreclosure. You can then approach the owners about acquiring the property prior to foreclosure and help them out of a sticky situation.

As is required, the Notice of Sale of a foreclosed property must me published in the newspaper. You will find notices for trustee sales in the Public Notices section of the local newspaper. It is important to be thorough with your research when you buy at trustee sales, therefore it may be better to be aware of properties before they reach the public notice stage of the foreclosure process. Exercise caution as properties are sold "as is-where is".

A good use of your time is to get familiar with the website in the area that is the focus of your search, in order to see what is available in the way of foreclosure research. This data is of use if you want to get the land before the actual foreclosure, or if you prefer to bid at a foreclosure auction.

Using multiple sources of foreclosures is encouraged because it allows you to access multiple sources of listings. There are many different sources, and reviewing the inventories of multiple asset managers, banks, the county clerk, and other government departments will give you a larger range of properties to chooses from. And the bigger your selection, the bigger your advantage over other investors.

At some point, you may have made the decision to begin dabbling in foreclosure investing, but you haven't yet started since you don't yet have foreclosure homes. Two key groups of listings include government foreclosures and bank foreclosures, and it is useful to think in terms of these two groups as there are numerous ways to identify foreclosure homes. It would also be beneficial to become familiar with the website for the county that is your target area. This will be useful for you whether you are looking for pre-foreclosure homes, or foreclosure auctions on the steps of the county courthouse.