Foreclosures ???

[Tom Slick]

This ones for all of you real estate guru's out there...How do you find foreclosures? It seems that there is some kind of underground realtor pipeline :D that enables people within the industry to run across foreclosures, or just plain old inexpensive properties before anyone else does. Obviously the market is starting to turn and foreclosures are on the rise, so I was wondering how to find them and what is involved in obtaining one? Or, how do you guys find run down, depressed homes that some one needs to unload for cheap?
Thanks

[ChumpChange]

I got a borrower with 9 units that wants to deed the property back to the bank. Letting it go for a fire-sale price. Currently vacant though so it will be hard to finance. It's also in Kansas City. You can probably get it for around $180,000. Should go for about $225,000 if fully rented.

[NOTALENT]

This ones for all of you real estate guru's out there...How do you find foreclosures? It seems that there is some kind of underground realtor pipeline :D that enables people within the industry to run across foreclosures, or just plain old inexpensive properties before anyone else does. Obviously the market is starting to turn and foreclosures are on the rise, so I was wondering how to find them and what is involved in obtaining one? Or, how do you guys find run down, depressed homes that some one needs to unload for cheap?
Thanks
Go to city hall and get the files/reports for them or you can go to a website that list them...like www.realtytrac.com either way get the addresses and go to there door and make them a deal before anyone else.
Another way is to place a ad in papers or online to save them from bankruptcy.

[soupersonic]

You go to the auctions on the courthouse steps.

[HM]

You can go on the FannieMae website and find foreclosures. The guys that do well at the foreclosures are the ones that send out 20+ bids and offer anywhere from 25% - 50% of the market value. Fannie Mae will usually have them listed anywhere from 70% to 80% of market value. The guys that do well have most of their offers rejected. But, the fed puts pressure on FannieMae when they have held on to these properties too long, and they will end up selling quite a few over at ridiculus prices.
There are other ways to get ahold of foreclosures, or even pre-foreclosures, but there is a whole industry running on preforeclosures. FreddieMac also has a listing, but the meat is with FannieMae.
Depending on what you want to do....get a good buy? Flipping? Rental Property? Most of the guys making money at this also will use hard money lenders for most of the purchases as most are flips. Hard money people will usually go 50% to 70% LTV...but LTV of the market value. If you pay 50% of the value, the lender is actually giving you 100% financing. And, if the lender goes say 70% LTV, and you buy it for 50% or less, the lender will give you cash out up to the LTV so you can fix up the property so it can be sold. Robert Allen is doing a bunch of seminars on this and charging people $5000 for the "introductory" seminar, which people don't know is the introductory, to only end up asking you for $30,000 to go to the "real" seminar. I'll tell you how to do it for free if you will listen to atleast one more FRENCHIE joke. :D
After the purchase and fix-up, the goal is a quick sale. Even though the hard money rates are high, they are nothing compared to the profits made on these deals. Still, none-the-less, you don't want to have to hold on to a property for very long that has an interest rate at 12% or higher. So, these properties are sold below market value to move quickly. Even though they are below market value, you bought them for 50% of market value or less. I don't agree with dumping these properties as it hurts neighboring values. So, I tell people to bump the price a little over market value, then offer 5-10% to the selling agent - basically, offer the agent the difference in the form of a commission. Since most agents are making 1-2%, you will have a TON of agents calling on that property, and they won't be low balling as they know other agents want to sell the property fast.
FYI - CA forclosure market is pretty messed up as there are too many amatuers involved causing prices to be way too high. Most of the best buys will be out of state.
And to address the "cash" only people.... if you buy a property ($200,000) for 25% of value and say you sell it at 75% to make a quick turn. You make 200% (2 times) on your money. Not bad? How about if you got in with only $500 and financed the rest. You buy this property for $50,000. Then you sell it for $150,000. Your ROI is 20,000% (200 times). What is your ROI if you put $0 down? But, but, but, but, but, but......you have a loan!!! O.k. lets say you are paying 15% on $50,000 and it takes you 3 months to flip it. 3 months interest is $1,875. So, your cost is really $500, plus $1,875= $2,375. So now your ROI drops to a measly 4,200% (42 times).
There is a lot more detail in how you put these offers out and you need to have very specific wording that most real estate agents have no clue on so you can back out of any deal at any time with no penalties or law suits.
I have a client doing this right now and he put out 30 bids last month. Two got approved. One in Detroit and one in Allentown, PA. Two more came back with counter offers that were below 50% market value. My client puts out bids at 25% of market value. He is going to counter the counter offers at 35%. He is not emotional. He has a set of rules to play by and doesn't waiver.
This is definitely not for financial jelly fish.

[Mandelon]

You can get a list of N.O.D.s and preforeclosures from your local title insurance rep. I rehab foreclosures for banks. We've had a HUGE increase in the numbers in the past couple of months. I don't see any money being made buying them yet, at least not around here.
Other locations I don't know about, but I can relate you this little gem. Make your money on purchase end of the transaction. Don't depend on the market rising to make you any $$$$.
There are agents who specialize in foreclosure sales. Look up organizations that they use like REOMAC.

[cdog]

In most cases that's way too much work for a regular guy who has a job. The Ca market is no where near there yet. Go to Hud's website and look for hud homes in areas. That will give you a good idea of how much is avaliable. If you find nothing that tells you where the market is at. I think it will take another 6 months to a year before we start seeing things come thru the pipeline. The deals won't come untill there are overwelming #'s of them.

[cdog]

RISMEDIA, April 25, 2006—RealtyTrac(TM) (www.realtytrac.com), a leading online marketplace for foreclosure properties, has released its 2006 Q1 U.S. Foreclosure Market Report, which showed that 323,102 properties nationwide entered some stage of foreclosure in the first quarter of 2006, a 38 percent increase from the previous quarter and a 72 percent year-over-year increase from the first quarter of 2005. The nation's quarterly foreclosure rate of one new foreclosure for every 358 U.S. households was higher than in any quarter of last year.
RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with more than 600,000 properties in more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, AOL Real Estate and Knight Ridder Online.
"The sharp increase in foreclosures in Q1 continues a steady upward trend that we've observed since the beginning of last year," said James J. Saccacio, chief executive officer of RealtyTrac. "Foreclosures have now increased in four consecutive quarters and are on track to go above 1.2 million in 2006, which would push the nation's annual foreclosure rate to more than 1 percent of U.S. households."
Saccacio noted that foreclosures actually dipped 13 percent from February to March, evidence that the nation's foreclosure rate could be leveling off after the long run-up.
"With the current market conditions, it's unlikely that foreclosures will return to the historically low levels they were at in recent years when interest rates hit rock bottom and home price appreciation skyrocketed in many areas of the country," he said. "But it's possible that foreclosures will flatten or even move a bit lower this Spring if more buyers and investors enter the market, giving homeowners in distress a better chance of selling their properties to avoid going into default or foreclosure."
Georgia, Colorado and Indiana post highest quarterly foreclosure rates
Despite a 19 percent decrease in new foreclosures in March, Georgia documented the highest state foreclosure rate in the first quarter of 2006 -- one new foreclosure for every 127 households. The state reported 24,419 properties entering some stage of foreclosure, more than two times the number reported in the previous quarter and nearly three times the number reported in the first quarter of 2005.
Colorado's quarterly foreclosure rate of one new foreclosure for every 138 households registered as the nation's second highest state foreclosure rate. The state reported a total of 13,267 properties entering some stage of foreclosure in the first quarter of 2006, more than twice the number reported in the previous quarter and a 96 percent increase from the first quarter of 2005.
With one new foreclosure for every 165 households, Indiana documented the nation's third highest state foreclosure rate in the first quarter of 2006. The state reported 15,261 properties entering some stage of foreclosure, an 84 percent increase from the previous quarter and more than twice the number reported in the first quarter of 2005.
Other states with first-quarter foreclosure rates ranking among the nation's 10 highest included Nevada, Michigan, Texas, Ohio, Tennessee, Utah and Florida.
Texas, Florida and California report most first-quarter foreclosures
Texas reported the most first-quarter foreclosures of any state, 40,236, and Florida reported the second most with 29,636. California was a close third with 29,537 properties entering some stage of foreclosure in the first quarter of 2006, but the state's quarterly foreclosure rate of one foreclosure for every 414 households was below the national average.
Also among the 10 states with the most foreclosures in the first quarter were New York, which reported 13,795 properties entering some stage of foreclosure, and Illinois, which reported 13,691 properties entering some stage of foreclosure.

[Hallett19]

We just attended REOMAC in Palm Desert 2 weeks ago and got our first forclosure listing in Pasadena 12 days ago. Its coming back !
Last forclosure listing we had was in '02.

[CARLSON-JET]

The three basic types are listed, Sherriff sale which is after the judgement but before it goes back to the bank. This is a cash sale. you must provide 10% cashiers check at the auction and pay the remainder within 24-48 hours. You do not get to see the inside but can get as close as you feel comfortable. you must look up any liens/loans against the property before you start to crunch your numbers for the bid. These can be found in the local paper or you can get some info on diffrent county websites depending on where you are at. DONOT bid on 20 houses through FannieMae or HUD unless you have the cake to finalize the transaction as you must put down 1K for the hud homes I believe and about 2500+ for FM. This is nonrefundable if you choke. You cannot flip a Hud house on the first pass they make on the market. this is a huge NO-NO. you must waite for the second tier sale. Visit the FM website and look for one of their classes they offer. I went to one and was the only person who had done any investing. The class is not geared for sherriff sales but I found it usefull. There is a TON of info I left out but this is a basic overview.