New real estate investors often want to know how to get foreclosure listings without spending lots of money.
Foreclosure listings may have properties listed at considerably lower prices than those on the open market.
Enough searching will likely lead to many of these listings at no cost. However, an alternative is just to pay for them, especially if time to search is limited.
There are many places to find inexpensive or free foreclosure listings.
Government websites are great places to get foreclosure listings. Although these sites provide the information for free, buyers or investors will need to get the services of a broker, real estate agent or a servicing representative when they want to submit a bid. Government sites like HUD, County Records, and other public records online provide this information.
Banks also provide lists of foreclosed houses to the public at no cost. Bank websites will have listed information of houses in certain areas. This is a good route to take since bank owned houses are often cheaper compared to other foreclosures. This includes local banks and large ones such as CHASE, Wells Fargo, and Bank of America.
The first thing a buyer needs provide is the state where they want to buy the property. The state chosen does not have to be the state that they reside in. Buyers need to be careful where they put your credit card in a website that make claims such as “Free Foreclosure Listings”. It may be best to stay away from paid foreclosure lists and only use one of the many free resources. The fact is, some of those sites that claim to have free listings may actually just be trying to entice people to sign up for a trial, without providing any useful information. There are many websites that offer foreclosure listings but most of them offer a trial period of about five to seven days after which they will charge for a subscription. Eventually, by researching and comparing the different free foreclosure listing services in the market, finding a good one will likely happen. Ultimately, getting free or cheap foreclosure listings over the internet will result in better results from a real estate investment.
Another great way to find foreclosure listings is to ask a realtor for free ones. Remember, foreclosures often require major renovations and a good amount of capital to fix them. Also, the buyer may need to pay for the home with cash because most lenders will refuse to finance a foreclosure if it needs major work. Thus, a buyer may not be able to get a foreclosure if they do not have enough cash to purchase it and to repair the home. Co-ops and condos are options for such cash strapped buyers.
The County Clerk’s office
A savvy move is to call the County Clerk’s office and ask where homes are posted that have not been acquired by the banks yet, which can avoid an auction altogether. If you are looking to purchase a home that has already been bought back by the bank, then contact a Realtor in the area and let them know what you are looking for. Banks often do not deal with the general public and buyers need to keep in mind that they are buying the property as is. There also has to be a certificate of occupancy, otherwise the buyer cannot get a mortgage. However, many foreclosure properties are purchased without a mortgage by investors. Some of them are great deals that might require paying over the asking price as there may be multiple offers. Foreclosures can be great deals, but be wary, some of them are nightmares. Using an experienced Realtor as a guide is very helpful during the process.
If a buyer does bid at a foreclosure auction, they CANNOT inspect the home prior to purchase. They may also need to show up to the auction with 10% of the purchase price in the form of a bank check.
Final Thoughts on Getting Foreclosure Listings
Buyers need to beware of the many scams asking them to pay up front to get foreclosure lists. Also, sometimes free foreclosure information is just for occasional online posts. Many of the free sites also require registration and payment for further info. Most amateurs do not know about all that it takes to flip a foreclosure profitably so using the help of an experienced realtor is a good practice.
New investors are often only interested in short sales and foreclosures, which are just trendy words for much larger processes with multiple parties involved. Such transactions are not necessarily for the faint of heart. The skill of a realtor or attorney needs to be applied in such deals. Many buyers do not learn this and wonder why months later the deal is dead and they still have no home. They should get all the help they can and use due diligence. Again, connecting with a licensed Realtor is probably their best choice to get started finding foreclosure listings.
Learn about How to Buy a House at Auction Without Cash in this article >
For some free foreclosure listings, check out https://www.foreclosurelistings.com/list/CA/.