Questions about this site If I give you my email, will you send SPAM or sell it? No. As a business policy, we never sell your email address. We never send you SPAM. Foreclosure What exactly is a foreclosure? A foreclosure occurs when payments have not been made on a mortgaged property. The lender can legally redeem or take the property away from the owner. In general, lenders will begin the foreclosure process after three months of defaulted payments. Prospective buyers will often try to find foreclosures when purchasing a new property. Home that are foreclosing may be prices way under its marketplace value as the lending institutions are motivated to sell these properties as quickly as possible. In addition, there are those who believe that purchasing a property that is being foreclosed is an excellent investment opportunity. They can resell the property at a later time at a much higher price. Our database offers and extensive, comprehensive list of homes that are under foreclosure. When you subscribe to our site, you gain access to this list as well as the many other services we provide. below are common questions you may have about our site. How do I use your database? After logging on to the site, you can do a general search, which allows you to view all the listings, or you can perform a quick search by entering the zip code or state you are interested in. As an incentive, we are offering a free 7-day trial period. If you would like to continue exploring our database after the trial week is over, it is only $24.95 dollars per month. Why should I subscribe to your site? Everyone wants a bargain. We understand that whether you are a buyer or an investor, you want to find a property at a reasonable price. We offer an extensive selection of properties under foreclosure that are currently available at discount prices. Updated daily, our listings come directly from the foreclosing lenders or appropriate government agencies. In addition to foreclosure properties and corporate space, our database includes REOs (Real Estate Owned) and properties from HUD, VA, and Fannie Mae, among others. What details do your listings provide? Our comprehensive listings include all the property details such as size, number of bedrooms and bathrooms, and property type. We also provide the necessary seller/listing contacts as well as tax information (sale prices, value, and age of property). We even mention the names, locations, and statistics of nearby schools. Some properties include photographs. Do I have to make a commitment? Of course you don't have to make a commitment. You can sign up for a weekly subscription and will be billed a cumulative total the end of each month. You are free to cancel at any time. You can click here to cancel. What kinds of foreclosure properties exist? A typical foreclosure goes through three phases. In the pre-foreclosure phase, the lender will initiate a foreclosure due to a default of payments. If the borrower does not (or cannot) pay back what is owed, the property will be sold at a public auction (this auction is phase two). If the property is not sold at auction, the lender gets it back and it becomes a REO (Real Estate Owned). The exception to this process occurs if the loans happen to be insured by a federal agency such as HUD, Fannie Mae, or the Department of Veterans Affairs (VA). In this instance, the agencies will pay the lenders and take over the property, at which point they will prepare to sell it. How do lenders initiate the foreclosure process? In states that use mortgages to prove property ownership, the lender must file a court case to prove there was a default on payments. This is known as a judicial procedure. However, some states use deeds of trust to prove ownership. This means that a court appearance is not necessary. These are non-judicial procedures, and they can take anywhere from 30 days to one year to resolve. How can foreclosure investing make me money? As explained earlier, foreclosed properties sell way below their market value. Purchasing properties below value is a sure way to make money as the investor can resell at a much higher price. Landlords even buy and rent foreclosures, with positive cash flow, to accrue long-term wealth. It is possible to get a substantial amount of equity up front when purchasing a foreclosed property. Using our database to search for foreclosing properties is an excellent way to get started. How do I purchase foreclosure properties? During the pre-foreclosure stage it is possible to buy directly from the property owners before it goes to auction. You can also put in a bid for the property once it goes to auction. If the property becomes a REO, you can buy directly from the lender. However, if you are trying to purchase a government owned property, you will need a realtor. HUD, VA, and Fannie Mae, along with other federal agencies, sell through realtors. Their listings can be found in newspapers, on the Web, or with management companies. Some realtors work directly with federally owned properties. How do I finance foreclosed properties? Most banks and mortgage companies will finance these properties. Going the conventional route is very cost effective for those who have a good credit history as they often offer competitive rates and terms. You can also try to find partners who might be willing to go in on a deal with you. You'll be surprised how many people are interested in real estate investing. Another option is contacting a hard money lender who specifically provides loans for real estate investments. You will still have to make monthly payments on the loan until you pay off the balance. Pre-Foreclosures How can I find a pre-foreclosure? Pre-foreclosures still belong to the owner. The lender has just begun the foreclosure process due to a default on loan payments. In addition to newspapers and the Internet (including databases such as ours), you can contact foreclosure attorneys or look for public sale notices (sometimes called Trustee Sales or Sheriff Sales) in papers that publish them. How do I initiate the buying process? How much money is needed? You must present a written contract directly to the owners as the property still belongs to them at this stage. After making contact with the owners via mail, phone, or personal visit, it is imperative that you find out all the details about the property (i.e. size, condition, age, etc.). You must also inquire about the number and type of liens in addition to loan balances. Once you have thoroughly researched the property and ascertained it to be a good deal, write and submit a contract to the owners. When negotiations are final, the attorney can halt the foreclosure process. You will not need much cash up-front. Property owners will often take a deposit of $1,000 or less. However, you will need financing to pay off the property. Are there any conditions I need to know about?
Auctions How do I find auction properties? If the owner is unable to make the necessary payments or sell the property, it then goes to a public auction. Auctions are open to both investors and homebuyers, and properties go to the highest bidder. The foreclosure attorney is in charge of the auction. You can find out about auctions either by contacting the attorney or looking through papers, databases, or listings. How do I initiate the buying process? How much money is needed? The opening bid is specified before the auction by the lender. The attorney will take bids until there is a winner. The whole process occurs very quickly so it helps to have an idea of how much you are willing to spend before it begins. You have to come prepared to make a deposit, which must be cash or certified check (no personal checks or credit cards allowed). In some instances, the deposit amount is specified beforehand. It can be a percentage of your offer or a fixed amount. The deposit is paid immediately, but you will need to have the rest of your financing accounted for, as you will have up to 30 days to make the rest of the payment. Are there any conditions I need to know about?
How do I find REOs? REOs are properties that have not been sold at auction and are now in the possession of the lender, who is usually eager to sell them quickly. It helps to follow properties that you are interested in through all the foreclosure phases. Therefore, you will know if it becomes a REO. In addition, many lenders deal directly with realtors so you may want to speak to your local realtor about possible foreclosures. How do I initiate the buying process? How much money is needed? This process is very similar to the procedure for pre-foreclosures. You must find out all the details of the property, including its physical condition and its financial state (mortgages, taxes, liens, etc.). Once you have decided to make an offer, present a written contract to the lender or realtor. The lender will usually request a deposit, which can range anywhere from $500 to a few thousand dollars, depending on the property's value. After both sides have agreed to the transaction, once again, it is imperative to establish financing as you are still responsible for paying off the property. Are there any conditions I need to know about? Remember to ask the lender its loan policies and financial terms. There are some lenders who might even offer you a loan to buy an REO HUD properties How do I find HUD properties? HUD issues mortgages through the Federal Housing Administration (FHA). It acquires property from lenders that foreclose on FHA-insured mortgages. They then sell these properties to the public. HUD properties can be found on its Web site and in newspapers. HUD often hires management companies or real estate agents to market these properties. You can find these listings in the Multiple Listing Service (MLS). You should also check with your local real estate agents to see if they have any listings. How do I initiate the buying process? How much money is needed? Bids for HUD owned properties must be submitted through a real estate agent. Your bid will be submitted either over the phone or through HUD's Web site. HUD holds all the bids until the offer is closed and then determines who offered the highest bid. If yours is the winning bid, you will have 48 hours to sign a contract. The real estate agent should have all the paperwork ready to go. The required deposit for a HUD property can be as low as $500. The whole process can usually be settled within 4-8 weeks. Are there any conditions I need to know about?
VA Properties How do I find VA properties? VA properties are offered through the Department of Veteran Affairs (VA), a government agency for those who have served in the military. One of their purposes is to provide mortgages for veterans. If the Department of Veteran Affairs acquires a foreclosed property they then sell it to the public. The VA uses local management companies to sell the property. You can find a list of these companies on the VA Web site. You can also check your local newspaper for listings or contact real estate agents in your area. How do I initiate the buying process? How much money is needed? In order to place a bid for a VA property, you must submit a VA form through a registered realtor. You can find the form on the VA Web site and have the realtor fill them out with you. The agent must then follow the policies of the management company to submit the forms. VA will inform the agent of the winning bidder. The VA requires a deposit ranging from $100 to 5% of the purchase price. Are there any conditions I need to know about?
Fannie Mae How do I find a Fannie Mae property? The Federal National Mortgage Association (FNMA) is commonly referred to as Fannie Mae. It was formed by the government to buy Federal Housing Authority (FHA) loans and sell them on the secondary mortgage market. When these properties are foreclosed, Fannie Mae acquires them from the lenders and resells them. You can find these listings on Fannie Mae's Web site or through a real estate agent. How do I initiate the buying process? How much money is needed? As with VA properties, Fannie Mae sells through a real estate agent. Your agent offers your bid directly to Fannie Mae, who has the option to accept, reject, or counter offer. Your agent will act as an intermediary informing you of Fannie Mae's decision. Once both parties have agreed on an offer, you can expect your down payment to range between 3-5% of the final price. Are there any conditions I need to know about?
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