Financial Reflections

Though many people suffer when the economy is bad, foreclosures are high, and homes don’t sell, there are many opportunities for those who have the funds available or can secure the funds for a foreclosure investment.

The common ways to find foreclosure listings can work, but keep in mind that, especially in times of high foreclosures, you will not be alone. Don’t rely only on only the common places to find foreclosures. Homes that are up for sale may be for sale to avoid a foreclosure. Call on houses that have for sale signs and find out more on the reasons that a homeowner chose to put their home up for sale.
When inquiring about a home that you feel has investment potential, gather the following information:

1. Length of time the house has been in for sale
2. The reason for the sale
3. Date any foreclosure proceedings began
4. When the foreclosure auction date is
5. The plans the owner has after the sale
6. The feelings of the owner regarding the house

Once you have narrowed down your list of homes that have foreclosure pending focus on the homes that are for sale that have the following:

1. Soonest foreclosure auction date-these people will be more willing to make a deal. The bank will also be more willing to make a deal as the foreclosure auction date approaches. Banks can agree to a short sale (accept a loan payoff that is less than the loan balance or discount the loan) due to economic hardships.
2. Foreclosed homes where the individual or family is interested in staying in the home and renting after the house sells-often these homeowners will rent the house to avoid moving costs. It can also help them keep their foreclosure more private because they don’t have to explain while they moved.
3. Homeowners who hate the idea of leaving their house may be interested in purchasing the home in the future and are willing to agree to a rent-to-own option while they get back on their feet financially

Putting up flyers in a neighborhood you are interested in buying a home in is another way to find foreclosures and those avoiding foreclosures before they put up a for sale sign. A flyer that has the following will get attention:

1. Information how to avoid foreclosure (brief but helpful)
2. Option to rent home once sold
3. How you can help the homeowner
4. Honest statements regarding searching for a deal
5. How you purchasing the home will benefit the seller
6. Your contact information

Finding foreclosures can be easy, but competing with others to purchase the home is not. Finding a home before the foreclosure becomes a public record or goes up for sale is the key. It takes a little extra work, but there will be less work competing for a foreclosed house that you are interested in. Don’t rely on others for your foreclosure information to find foreclosures.