In depressed markets, finding foreclosures is fairly easy; just drive around in neighborhoods and look for the signs hanging from the doors. The recent housing market has made it extremely easy lately to find foreclosed houses to invest in. Advertised in the paper, on street signs and even word of mouth, houses have been popping up on everyone’s investing radar. But what happens when the market turns around? Where do you look to find foreclosures then? Stick around and let’s take a look at how to find investment foreclosures in any type of market.
By far, weak markets have more foreclosures than strong markets. Many homes once offered as short sales, may end up on the foreclosure listings and eventually deeded to the banks. There are numerous reasons to wait to buy a home until it has hit the foreclosure status, namely investment capital.
Yes, there is quite a difference in the amount of money you will spend on a home that is still being short sold versus one that has already been repossessed by the bank and is now up for sale. Finding foreclosures is as easy as looking through the classifieds. Most of the time, real estate agents specialize in one type of housing.
In depressed markets, finding foreclosures is fairly easy; just drive around in neighborhoods and look for the signs hanging from the doors.
CC image courtesy of morisius cosmonaut
Find a couple of foreclosure listings and chances are if you look at all of the agent’s listings, you will find many more foreclosures.
Driving around is another way to find foreclosures in a weak market. Many agents or banks will openly advertise that a home is in foreclosure. The bright signs and droves of cars are a good indicator that a house is in foreclosure.
Strong markets are a different beast. When there are few foreclosures, it can be a little more difficult to seek them out, but it can be done. The trick with strong markets is to get an upper hand on other foreclosure investors. This can be done by calling a listed foreclosure agent and asking about other foreclosures that are not listed yet in the MLS (Multiple Listing Service) database.
Many real estate agents will wait a couple of weeks before officially listing a foreclosure. This is so they can verify with the bank, the exact listing price they want on the property. By asking ahead of time, your agent can point out other foreclosed homes in your price range.
Bank websites are another place to look in a strong market. Many of the national banks, such as Countrywide, Bank of America, and Chase list all of their current foreclosures on their website. While these are hit or miss, because they are on a national scale, it is a good place to start.
No matter what market you are in at the present, finding foreclosures is not as difficult as you might think. With a little deductive reasoning and a bit of super sleuth work, you will be able to find the perfect house or project for your budget. Get out there and keep your eyes open for a foreclosure near you.
Monica Hampel blogs at Uanema News where your financial questions are answered. She is free from debt.