Have you ever heard someone say they found an amazing deal on a house and wondered how they did it? Many times, those deals come from something called preforeclosures. These are homes where the owners are behind on mortgage payments, but the property hasn't officially been taken by the bank yet. This stage creates a unique window of opportunity for smart investors and homebuyers.
If you're looking to get started in real estate or just want to find a great deal on a home, learning about "preforeclosures near me" could be your secret weapon. These properties are often sold below market value, and since they haven’t been listed widely yet, there's usually less competition from other buyers.
In this guide, we’ll walk you through what preforeclosures are, why they matter, and how you can start finding pre-foreclosures right in your local area. Whether you're hoping to flip a home, rent it out, or just buy your first property at a discount, this information could be a game-changer for your real estate journey.
A preforeclosure is a property in the early stages of the foreclosure process. This happens when a homeowner has missed several mortgage payments and receives a notice of default from their lender. The key detail here is that the homeowner still owns the property and can choose to sell it to avoid full foreclosure. That makes investing in preforeclosures a smart strategy for those looking for deals.
If you've ever searched "preforeclosures near me", you're already one step ahead. These properties are often overlooked by the general public but are full of hidden potential. Here’s why they’re worth your attention:
For real estate investors at any level, preforeclosures offer a unique mix of value, flexibility, and opportunity that traditional listings often can’t match.
When a homeowner falls behind on mortgage payments, it can create stress, fear, and financial pressure. Once they receive a notice of default, the clock starts ticking. If they don’t catch up on payments or take action, the bank may take back the home through foreclosure.
Selling the home during the preforeclosure stage is often the smartest move the owner can make, and here’s why:
For real estate investors, understanding why owners want to sell during this time is key to building trust and closing win-win deals. So, when you're finding preforeclosures near you, remember you're not just investing in preforeclosures, you're also offering relief to someone in a tough situation.
Check out the video below for more on why someone would want to sell a house in pre-foreclosure rather than let it go to foreclosure.
If you’re ready to start finding preforeclosures near you, there are several proven ways to locate these opportunities. The key is knowing where to look and using the right tools to stay ahead of the competition. Here’s how to get started:
Your local courthouse is one of the best places to begin your search. When a lender issues a notice of default, it becomes public record. You can visit your county courthouse (or check their website) and search for these notices. They’ll usually include the homeowner’s name, the property address, and the lender’s information.
It may take time to learn how to navigate these systems, but it’s worth the effort. These records are often the earliest sign that a property is entering preforeclosure, giving you a head start before others find out.
Several websites specialize in listing preforeclosure properties. While some listings may not be fully up to date, they still provide a helpful overview of what’s available in your area.
Just remember, using these tools is a starting point. Always double-check the status of a property and do your own research before making a move. These sites make finding preforeclosures easier, but they don’t replace smart, hands-on work.
Apps have become a game-changer in investing in preforeclosures. One powerful tool to consider is DealMachine. This app lets you access a plethora of data while building a list of properties and gather owner info and property data with just a few taps. It can also send direct mail to homeowners and track follow-ups, making your outreach much more efficient.
These tools make it easy to find pre-foreclosures near you from your phone, helping you stay ahead of traditional buyers.
Sometimes, the best leads come from word of mouth. Building strong relationships with real estate agents, brokers, and other investors in your area can open the door to off-market preforeclosure deals.
Join local real estate investment groups, attend meetups, or participate in online forums. These connections often have firsthand knowledge of who’s behind on payments or looking to sell quickly. A solid network can help you find deals that never make it to public listings.
Preforeclosures give investors and homebuyers a chance to purchase properties at a discount before they hit the wider market. If you're searching "preforeclosures near me", remember: acting early, doing your research, and using the right tools—like DealMachine—can give you a competitive edge.
These properties can benefit both buyers and sellers, making them a win-win opportunity in real estate investing.
What is a preforeclosure?
A preforeclosure is a property where the homeowner has defaulted on mortgage payments but still owns the home. It’s the stage before full foreclosure.
How can I find preforeclosures near me?
You can search public courthouse records, use real estate platforms, download real estate software like DealMachine, or network with local real estate professionals.
Why do owners sell in preforeclosure?
Homeowners may want to avoid foreclosure on their credit report, reduce debt, or walk away with any remaining equity.
Are preforeclosures a good investment?
Yes—preforeclosures often sell below market value and allow direct negotiation, making them ideal for investors or buyers looking for a deal.