Foreclosed homes can offer great deals, but finding them isn’t always easy. The good news is there are proven ways to track them down. If you’ve been wondering how to find houses that are in foreclosure, this guide will walk you through five simple methods. Whether you're investing or looking for your next place to live, you’ll learn how to find a home in foreclosure that fits your needs.
Understanding Foreclosure Properties
Before you start searching, it helps to understand what makes foreclosure homes such a big opportunity. These homes are usually sold for less than market value, which means buyers can get a great deal. That’s why so many investors are on the lookout for them. But because demand is high, finding foreclosure houses can be tough if you don’t know where to look.
Foreclosed homes go through a legal process that allows lenders to reclaim the property after missed payments. This creates a window where the home is available for purchase, often at a lower cost. Some foreclosures are auctioned off, while others are listed through banks or real estate agents.
It's important to know that not every foreclosed home is in poor shape. Many are in good condition and simply need the right buyer. That’s why learning how to spot these deals early can give you a big advantage.
How to Find Houses That Are in Foreclosure
Now that you know why foreclosed homes are worth chasing, it’s time to learn how to actually find them. Whether you’re just starting out or looking to sharpen your search, the five methods below will give you a real advantage in spotting these deals before the competition.
1. Harnessing the Power of Real Estate Software
Real estate tools like DealMachine make it easier to find homes that are in or heading toward foreclosure. With just a few clicks, you can filter properties by status, such as pre-foreclosure, foreclosure, or upcoming auction.
The software also shows key details like owner information, tax data, property data, and nearby sale prices. This helps you quickly spot properties that match your goals. Once your filters are set, you can build a custom list of leads to track or contact and market to. Using software like this keeps your search organized and helps you act faster than other buyers in your area.
2. Exploring Newspaper Listings
For those more comfortable working offline, newspaper listings are a goldmine when it comes to how to find foreclosure homes.
Newspapers typically list foreclosed properties up for auction, offering interested investors a perfect opportunity to find foreclosed houses. Look in the legal notices or classified sections, where banks and local governments publish required foreclosure announcements.
These listings can give you a heads-up before the property appears on big real estate websites. Checking local papers regularly can help you stay ahead of the competition, especially in smaller towns where online listings may be limited or delayed.
3. Digging into Local Court and Public Records
One of the more dependable ways to find foreclosure properties is through local court records and public notices. These public records often include information about properties undergoing foreclosure procedures and may hold the key to your next investment. Check for notices of default, auction dates, or lis pendens filings (Latin for pending suit), which signal the start of the foreclosure process.
These documents are usually available at the county courthouse or on local government websites. With some patience and regular checks, public records can reveal properties that aren’t yet widely known, giving you a better chance to take action early.
4. Turning to Banks and Real Estate Owned (REO) Departments
Another little-known fact is that banks often have a backlog of foreclosed properties. Reaching out directly to these banks or their REO departments will unveil an untapped source of foreclosed homes that many investors overlook, providing an efficient method to find a foreclosure home.
These departments may also have lists of upcoming or recently repossessed properties that haven't hit public listings yet. A quick call or email could lead you to hidden inventory that others haven't discovered.
5. Leveraging Real Estate Agent and Broker Networks
Last but not least, real estate agents and broker networks can often provide information about foreclosure properties. In their network, they might have the leads you need to learn how to find out about foreclosed homes. Many agents have access to listings before they go public and can point you toward opportunities that fit your budget and goals. Building a good relationship with a local agent can open doors to deals you might not find on your own.
Check out the video below to see Devin's top ways to help people in foreclosure.
Final Thoughts
While the task of how to research foreclosure property might seem daunting at first, once you've grasped the fundamentals of these five methods, the journey becomes a lot more navigable. Remember, the key to success in real estate investing lies in diligence and persistence.
