How To Look For Homes In The Pre Foreclosure Phase
Probably the biggest challenge in investing in pre-foreclosure homes is finding the foreclosure homes. When someone talks about the pre-foreclosure phase they are referring to the period before the notice of default is actually filed. Obviously it's going to be more challenging to find pre-foreclosure homes because the distress situation is not public knowledge.
The key to finding foreclosure homes in this early stage is to use your detective skills to look for the clues that might indicate distress. You need to develop a simple but systematic system to gather the information you need.
First of all, you'll have to take look at the classified ads in your local newspapers. Pay particular attention to realtor advertising for specific words. Motivated sellers use descriptive words such as must sell, under market, under appraisal, rent to own, lease option, take over payments, divorce, illness, death, owner carry, motivated seller or nothing down. Don't be afraid to pick up the phone and inquire about a home that looks like it might have potential. This is mostly a numbers game, the more properties and contacts you make the more likely you're to find that gem you've been looking for.
You can also run advertisements in the classifieds in order to get owners with pre-foreclosure homes to call you. Figure out what distressed property owners are looking for in order to fix their situation and help them.
Let everyone you know, know what you are looking for. With the number of foreclosure homes on the rise, someone you know either needs help or knows someone who does. Get yourself some simple business cards and hand them out to your friends and acquaintances.
The process of finding pre-foreclosure homes can prove to be a lot of work but it could reward you with a nice profit in the end.