Let’s explain what is Pre-foreclosure before we show you how to find homes in pre-foreclosure. Pre-foreclosure homes, as the name implies, are properties that are still in the early stages of the foreclosure process.
When a lender files a Notice of Default, a home enters pre-foreclosure. When this occurs, the property owner has two options: repay the debt and have the status reversed, or sell the property before it is repossessed. The second alternative gives an excellent opportunity for a real estate investor to get an undervalued real estate investment. This is owing to the fact that the property owner will be under a lot of pressure to sell quickly and will be more willing to accept a low offer.
Other benefits of purchasing pre-foreclosure houses include:
- When making an offer, you are unlikely to face any competition.
- The purchasing procedure is quite quick.
- Unlike buying at an auction, you have the opportunity to inspect the investment property.
How to Find Pre Foreclosure Homes
Pre-foreclosure houses can be found through a variety of techniques. When it comes to finding these investment properties, there are plenty of possibilities. Furthermore, there are a number of real estate investment tools available to help with the process. In any case, here’s how to find homes in pre-foreclosure in 2021.
1- Use real estate websites
Pre-foreclosure listings are available on various real estate investing websites. You’ll also get access to the information you need to evaluate any property on the market. In fact, a real estate investor can find the appropriate investment in less than 15 minutes with this search engine!
2- Work with a real estate agent
When it comes to real estate investing, working with a real estate agent is always a realistic alternative. In reality, finding experienced agents who specialize in the same type of real estate deal that you are looking for is not difficult. You should use a real estate agent who is knowledgeable about the property repossession process if you are buying a pre-foreclosed home. Working with one will help you avoid making some of the usual mistakes that new real estate investors make while dealing with the foreclosure process. This, of course, does not apply to you if you are an experienced investor.
3- Sift through public records
Off-market houses for sale are frequently found in public records. Furthermore, anyone who is eager to go through this data can do it for free. Even better, you can employ a third party to mine all of the pertinent data for you. When looking through public documents, look for any Notice of Default letters that have been issued in the area, as well as any Lis Pendens and Notice of Sales. The owner’s address and name are also included in the public records, making placing an offer considerably easier.
4- Search newspapers
Although it may appear to be an outdated practice, scanning local newspapers is still a viable option in today’s real estate market. When looking for pre-foreclosed homes, most newspapers feature a legal notice section, which is where you should focus your attention. It contains a list of homes that are expected to be auctioned off in the near future. However, legal notice sections do not contain a lot of information on the income property, so the real estate investor will still have to put in a lot of effort to get a lead, which may include acquiring more homeowner information.
5- Explore your real estate network
Real estate agents aren’t the only ones who can help you buy a home before it goes to a pre-foreclosure auction. Get the word out to everyone in your real estate group to increase your chances of landing an investment. This covers everyone from mortgage lenders to real estate attorneys that have assisted you in the past with closing deals. Real estate wholesalers are another group of professionals who deal with pre-foreclosure listings. For instance, you might know a wholesaler who is well-versed in a specific area as well as the types of listings that are currently on the market.
