How to Find Foreclosed Homes and Under Market Properties
Investors rightly see the current real estate market as a time of opportunity. In truth, there is always a good deal to be made in real estate. Investors can look for foreclosures in and out of distressed property markets. Foreclosure investors can find cheap property in both hot and cold markets.
What's more, foreclosure investors might even find a large return on investment in high-end neighborhoods. These luxury properties often sell for substantially less than market value. Conversely, homes can be found in any type of neighborhood, as distressed property markets can be found nearly anywhere.
How to Find Foreclosures
There are a number of ways to find under market properties and foreclosure properties. Investors can use various sources in order to find homes that can be purchased between 20 and 40 percent below market value.
- Visit bank websites. Most banks will have a section on their website dedicated to REO or Real Estate Owned properties. These are homes repossessed from borrowers through the foreclosure process. Banks are usually anxious to get these properties off their books.
- Check county offices. The local county property appraiser and/or tax collector's offices likewise have searchable indexes for foreclosed homes. In many instances, these records are available at the office itself. Additionally, more and more county offices are publishing these lists online.
- Look for government listings. Fannie Mae, Freddie Mac and the Department of Housing and Urban Development all have search portals investors can use to find properties. They are searchable by zip code, price and/or floor plan--meaning the number of bedrooms and bathrooms.
- Purchase a foreclosure list. While other options are free, lists can be purchased which are regularly updated. Investors might find Internet searches to be somewhat unreliable as the inventory is not updated often enough to reflect real-time results.
- Go through civil records. Local civil circuit courts are a good source for finding foreclosure properties. Because foreclosure is a legal, civil process, the lender must sue the borrower or give formal notice to the court of jurisdiction about a foreclosure action.
- Use a CDPE agent or Certified Distressed Property Expert. Engaging the services of an experienced, CDPE agent or Certified Distressed Property Expert will give investors the edge when new properties come on the market. In addition, using a professional real estate agent will help an investor not only find properties but evaluate their profit potential. Contact me, a CDPE Las Vegas Real Estate Market specialist, today for more information.