The Hunt for a Bargain: Finding a Foreclosure List
Foreclosure is an unfortunate fact of homeownership for many people today. For many reasons that include job loss, divorce or medical problems, numerous borrowers will find themselves in a situation where they can no longer make the monthly mortgage payments on their home loan. When this happens, the bank has the legal ability to "call" the loan, which means that they can demand payment in full. This is usually the beginning of the foreclosure process, and the time when a piece of property will land on a foreclosure list to get snapped up as a bargain by investors and those shopping for a new residence.
Bargain or Nightmare?
Some homes that end up on a foreclosure list really are a true bargain and others can quickly become more trouble than they are worth. Some homeowners in the midst of losing their homes can do damage to the property in their frustration or strip the home of many of its assets before moving out. Since homes on a foreclosure list are often sold "as is", it can be a case of "buyer beware" in many of these situations. However, other homes that end up on these foreclosure lists will indeed be quality pieces of property that are being offered below market value. The key is in knowing how to find the diamonds in the rough so that you can seize the opportunity when it arises.
Through the Real Estate Market
Many real estate agents will specialize in selling homes on the foreclosure list, and if you can discover who those agents are, you may be able to snatch up a bargain property. One way to find these agents is by checking out the For Sale signs in your area. If you find some that say "bank owned", "bank repo" or "foreclosure", contact the agent listed on the sign. Then ask if that agent has any other properties for sale on the foreclosure list. You can also ask your own real estate agent to pull up the homes on the foreclosure list for you. These professionals will have access to information on the MLS listings that potential buyers do not have, including properties for sale on the foreclosure list.
Through Lenders
Many lenders will have foreclosure lists available that include the homes that are currently bank owned by their company. These lending institutions might include banks, mortgage companies and government agencies like HUD and Fannie May. The Department of Treasury will also keep a foreclosure list of homes that have been seized by the IRS. Most of these organizations will have website listings of homes to make it easy for you to find the location and price range that you are looking for.
By exhausting all of these sources, you are very likely to find a home that you want at a price that is affordable. Foreclosure lists are the perfect way for new homeowners or those simply looking for a bargain to find their next house.
