Where Should You Look for a Home Foreclosure?

Finding a good deal on a home foreclosure is sometimes difficult if you do not know where to look. In recent years, the competition for foreclosures has grown. Thanks to a plethora of late night infomercials, people believe that you can get rich overnight with the help of a few foreclosures. While it might not be as easy as it looks, home foreclosures are still a good place to invest if you do it correctly.

Real Estate Agents

Although real estate agents might seem like an obvious place to look, many people do not use them effectively. If you simply scroll through the local MLS website, you are not doing what you should do. Most of the best deals never make it to the MLS. Real estate agents have a number of investors in their network that they will check with before they list it officially. If you make friends with a local real estate broker, they will be able to alert you of the best deals before anyone else sees them. Therefore, the level of competition is greatly decreased in this situation. You can buy a house before it even hits the open market. When you aren't bidding against other potential buyers, it lowers the price that you will pay and save you money.

Banks

Many banks have a department that handles all of their foreclosed properties for them. Many of them are not listed with a real estate agent and the banks are just sitting on them. The best way to get this information is to simply call the banks and ask. Ask them if they have any foreclosures that they are trying to sell. Some banks will have a website that you can visit with recent information. Others will have someone that you can talk to in order to get the information you need. When you get the information you need from the bank, you can make an offer that is lower than the market value and they will often accept it. How much below market value they are willing to accept will vary from bank to bank.

Classified Ads

The small cost of a newspaper subscription can go a long way towards helping you find some great deals on foreclosures. Many times, they will be listed in the newspaper by the bank or by a real estate agent. If a foreclosure is going to auction, you will find the notice of the auction in the newspaper as well. This is public information, but many investors fail to look at the obvious. With that being said, you will have to act fast on the good deals with this method. If you live in a big area, there will undoubtedly be some competition for the good properties. You will need to call the contact information in the ad and get the details you need quickly.

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