Secrets to Finding Pre-Foreclosures for Short Sales

By far, the most essential step in the short sale process is finding motivated sellers

in pre-foreclosure. If you can’t find motivated sellers in pre-foreclosure, then it will

be very difficult to do short sales.

I will share with you a few of my secrets of finding motivated sellers and you just

need to choose 3 or 4 of them to use that fit your style. The idea behind this is to

maintain a constant flow of pre-foreclosure leads – potential homeowners who need

your help and expertise.

There are several ways in which to find motivated homeowners. Newspapers, ads,

signs, courthouse, attorneys, just to name a few. See, when a homeowner is

delinquent on their mortgage, a legal notice or notice of default must be sent to the

homeowner to let them know that their property will be going to auction soon. Once

the legal notice has been recorded, you can go to the courthouse and research these

files to find homeowners in default. These legal notices are published weekly,

sometimes daily at the courthouse. This will be the first place to look. Go down to

your county courthouse and ask to speak to the clerk of courts. Then ask him

where they publicize the legal notices or notices of foreclosure or lis pendens.

Depending on what state you live in, they may call it something different. If you

can’t get any answers, then go to the recorders office. Any legal action must be

recorded. You are looking for notices that show homeowners have defaulted on a

loan and are now trying to collect the debt. Once you find them, make sure you

don’t take any of these notices or files out of the building, just ask them if you can

make copies.

Before you leave, ask the clerk or recorder if there is a county website or newspaper

that publishes all the legal notices so you can save time by just looking them up on

your computer. Most newspapers have a website with everything on it – yes even

legal notices. Let me clarify one thing. Ideally, you are trying to find homeowners

who are 90 days from the auction because this gives you more time to negotiate a

short sale with the bank. Every state is required to notify the public, usually by

newspaper, that there will be a foreclosure auction on such and such a property

anywhere between 3 to 5 weeks before the auction. So be aware that if you find

legal notices in a newspaper, the auction is only 3 to 5 week away. You must act

very quickly and know what you are doing. On the other hand, when you go to the

courthouse or recorders office, typically the homeowner still has a few months

before the auction.

Real estate agents can become very useful to you. They are constantly looking at

real estate, it’s their job. Start networking with them. Come up with some sort of

win-win. Let them know if they ever see a property that is upside down or

over-leveraged, to give you a call. If you buy the property, let them list it for you.

Agents make their money from commissions. You treat them good, they will treat

you good.

Business cards are another great way to find pre-foreclosures. You can hand them

out to everyone and let them know you buy distressed properties. Give them out to

real estate agents, attorneys, friends, neighbors and so on. Anything that gets your

name out there that you are looking to invest in distressed properties. Make them

attractive so people want to call you back. Send them out in all your letters. Money

talks for most people. So set up some sort of referral program where you give them

money if they know of anyone who may need your help and you buy their home. I

don’t know how many people I’ve talked to just because of a small finders fee. Most

of the time it’s friends and neighbors of the people you are doing the short sale

with. They are so pleased with what you’ve done with them, they want you to help

their friends or family, plus they get a finders fee. You could have something like

this – „this card is worth $1000 to whomever finds me a property!“

Attorneys work well because a huge number of people are filing for divorce or

bankruptcy. If you know any attorneys that specialize in these areas, work with

them. They can become one of your greatest assets.

Other methods include flyers, magnets, newspaper ads, and signs you see on the

side of the road. Try all these ways to find pre-foreclosure leads and then focus on

the ones that bring you the best results.

Immobilienmakler Heidelberg

Makler Heidelberg