Considering Foreclosures

Posted By: Tadd Jones ICOR Blog & News,

The market certainly seems to be thawing, but it is likely to remain tough to find project homes for a while. Rather than working the same processes harder, it may be worth looking in a few new places. With some of the pressure and silliness from last spring coming to roost, foreclosures are coming, so why not get educated now? To find homes in foreclosure, here are a few places to try:

  • Check the notices: Check the public notices section of local newspapers, online classified ads, and government websites for listings of homes in foreclosure.
  • Check online listings: There are numerous online resources available that list homes in foreclosure, such as RealtyTrac, Zillow, and com.
  • Contact a real estate agent: A real estate agent who specializes in foreclosures can help you find homes in the process of being foreclosed on and can provide valuable information and assistance.
  • Attend foreclosure auctions: Many homes in foreclosure are sold at public auction with each county administering their own. Attending one or two and will help you understand how they work. 
  • Professional foreclosure brokers: There are a few brokers that specialize in foreclosure auctions, and certainly can be worth their fees.
  • Contact banks and lenders: Banks and lenders often have lists of homes in foreclosure, and they may be willing to sell them directly to buyers.
  • Talk to wholesalers: Wholesalers work many channels, and we’ve been hearing them sniffing around in the space.

Make sure you understand what you are buying, as buying a home directly out of foreclosure certainly has its own set of issues. The two big advantages are a generally lower price and an ability to take quick possession. The disadvantage, of course, is the unknown condition of the home, as most auctions do not allow a thorough inspection, if any at all. Learning about foreclosures now can open a new source for properties and be well worth the effort. Or not. But in a tight supply market it’s certainly worth considering, and there will be supply coming from this channel.

If you need some help understanding this and thinking about it, give me a ring and we can discuss it and if you’d like, I can introduce you to a few people in the areas you are thinking about.  Or we can go discuss it over tacos.