Friday, April 30, 2010

Find Foreclosure Homes - Seize Every Opportunity By Joseph B. Smith

The real estate business is growing everyday, thanks to the enticing appeal of cheap houses that are abundant on the market. The lure of potentially earning a lot of money from a small investment is the biggest motivating factor for investors who would like to find foreclosure homes. What you must know is that there are various stages of a foreclosure proceeding that you can take advantage of when investing in foreclosures.

Pre-Foreclosures

When a homeowner defaults on their payment for at least 90 days, the lender files a Notice of Default or Lis Pendens that serve as a public notice to potential buyers. This is the pre-foreclosure stage and one which can be the most opportune time to buy a property. It is called pre-foreclosure because the bank usually gives the defaulting homeowner several months to make his loan current.

In a pre-foreclosure, the sellers are usually more agreeable to offers because they want to avoid a bad credit score that they would most absolutely be tainted with once their properties are foreclosed. If a pre-foreclosure property has not been listed yet, you avoid a lot of competition that comes with a property that appears in multiple listings.

Pre-foreclosures also afford you a lot of time to do a comparable analysis of market prices and have a home inspection. In this way, you will be able to ascertain the viability of house as an investment.

Foreclosure Auctions

If, for some reason, the home owner fails to make his loan current, then the bank will attempt to sell the property at an auction to recoup its investment. If you want to find foreclosure homes, auctions can provide you with numerous opportunities to find properties that you can flip for a short period of time.

A foreclosure auction is one of the favorite places of more experienced investors because of the comprehensive property information that it provides bidders. Buyers who have been through several auctions already know that this is the perfect complement to their own research and home inspection tours.