I have tried unsuccessfully to enter the foreclosure market. I keep tabs through Realty Trac.com on foreclosures in my town. I tried finding an agent in my town who is familiar with foreclosures but to no avail.
Is this a closed club? The houses cycle through Realty Trac but I seem unable to get in on any.
I have also not had any success finding a simple blueprint on buying a foreclosure, are there any resources that you found very helpful when you got started?
Replies
There's lots of resources out there on buying distressed properties- from $15 books to $5,000 courses. They all agree on one thing- if the house has actually gone into foreclosure (hence being listed in your RealtyTrac), it's likely priced to high to make a good deal.
Success in distressed properties requires that you find the properties when the owner is in trouble, but hasn't yet been foreclosed upon- at that point, you can sometimes pick up a house for a fraction of what it's worth. Banks nowadays don't blowout foreclosures for just what's owed on the mortgage like they used to- they usually end up putting them up at or near market value so they can make a little $$ in the process. Plus, with so many people defaulting on these stupid interest-only, no-down mortgage products that have become so popular lately, there's little equity available in alot of the properties that get foreclosed on anyway.
Bob
Typically the bank forclosing is the one that buys it. The auction is merely a formality, unless you want to bid substantially more then the bank is owed, including their forclosesuer costs.
JImbo, I went to the realty trac site. They are nothing more than a public record search engine, I think.
There isn't just one strategy to deal with foreclosures. Your idea of "finding a simple blueprint " is certainly admirable, but don't expect to substitute doing all the hard work involved in that business.
I said, "that business". If you don't treat it like a business, you won't get anyhwere.
So, start from the start. Learn, research, write a business plan, then go study your market, find a house that fits your gameplan, make an offer.
After numerous offers (after the other prep), you'll land one.
The author I like best regarding foreclosures is Peter Conti. Do a search on Amazon and pick up a couple of his books.
blue
"...if you just do what you think is best testing those limits... it's pretty easy to find exactly where the line is...."
From the best of TauntonU.
check woth your county Sheriff's office. They usually handle real estate foreclosure and tax foreclosure sales.
I know my county Sheriff's office has all their stuff online now but you used to be able to get a list mailed to you every week for the cost of postage or you could pick the list up for free.
When you're this good, EVERYONE wants a crack at you!
http://www.petedraganic.com/
Edited 1/13/2007 5:28 pm ET by PeteDraganic