Foreclosures are at an all-time high, and real estate prices have dropped considerably. While many people are struggling, others are in a position to take advantage of the opportunities the current market has to offer. But how do you find foreclosure bargains?

The Internet

The internet has many companies specializing in listing foreclosures. Listings are available in all areas. However, most of these companies charge a fee for the information, and sometimes the information is outdated or inaccurate. Take advantage of trial membership offers to determine the quality and accuracy of listings.

Newspaper and Classifieds

Laws require public notice of foreclosure sales in a local newspaper. Auctions are often held at the local courthouse. You will need to know the financial requirements for bidders, as well as the necessary procedures.

Both newspapers and local “shoppers” often list properties for sale by owner. These properties are often listed by homeowners trying to get out from under a crippling mortgage burden. However, there is often a great deal of competition from other investors.

One solution is to place your own ad offering to buy homes. Homeowners will often contact you before publicly advertising, reducing competition from other investors.

Direct Mail

Some investors send out mailers, again offering to buy homes. This can be an effective method, especially if you want to focus investments within a certain area.

Real Estate Agents

Real estate agents are often aware of properties in various stages of foreclosure. Establishing a good working relationship can help you obtain information on bank- or government-owned properties.

Banks and Finance Companies

Banks and finance companies often have lists of “REO” properties-Real Estate Owned. Too many REO’s create problems for lenders-not only are properties subject to vandalism and deterioration, they aren’t bringing in any income. You can often get highly favorable terms by buying direct from lenders. And once you establish yourself as a reliable investor, you may find the process even easier.

Word of Mouth

Most investors find that word of mouth is one of the most effective ways of locating foreclosure bargains. Hand out business cards to everyone you know, letting them know you are in the market for foreclosure properties.

Buying foreclosure properties can be a profitable investment, or it can turn into a financial disaster. Be sure to inspect properties carefully to determine if there are serious deferred maintenance issues or significant damages. Obtain professional advice where necessary, and review all documents carefully before signing.

Property condition is often a factor when looking for a foreclosure property, because there is a reason that the home was foreclosed upon. Typically the previous owner was experiencing a hardship of some sort in their financial situation. This often means that prior to the home getting to the foreclosure stage. The home often falls into disrepair. It only makes sense. If the previous owner could not afford to stay current with the payments that they could also not afford to keep the home maintained.

Author Bio: Denver Real Estate Firelight Homes

Category: Real Estate
Keywords: foreclosure