Great Pre Foreclosure and Short Sale Tips: Pre Foreclosure Lists

Posted on February 5, 2009 at 11:28 pm
investing in foreclosures
Colin Egbert asked:


Pre Foreclosure Lists: Lis Pendens or Notice of Default

Short sale investors frequently begin their deals by contacting the homeowners in preforeclosure. Yet, many new investors complain that they have no idea how to find these preforeclosures in order to make contact. Once you know how to find these homeowners, you’ll be surprised that so few investors work in foreclosure properties.

Lis Pendens and Notice of Default

When a homeowner’s bank files foreclosure papers, the homeowner is notified with a lis pendens or Notice of Default. They are different papers that mean basically the same thing; the bank is going to take the homeowner’s property for non-payment of the mortgage. A Notice of Default (NOD) is the form used in non-judicial foreclosure states, while the lis pendens is used in judicial foreclosure states where the bank has to go to court and sue the homeowner for their property.

The lis pendens is filed by the lender (bank) as a formal notice to the homeowner that the bank has started the foreclosure process. The homeowner still has the right to sell their property or even refinance that property during preforeclosure. A short sale is after all selling the property, it’s just that you are getting the bank’s agreement to sell the property for less than the mortgage is worth.

Once one of these two forms is submitted by the bank, the homeowner has a certain amount of time before their property goes to the sheriff’s auction. This amount of time varies greatly from state to state. It can be as little as 90 days or as long as 12 months.

You can identify preforeclosures, by looking for the lis pendens and NOD. All it takes is a little research.

Find Preforeclosures at the County Recorder’s Office

By law, the banks can’t release information concerning preforeclosures to those involved in short sale investing and real estate investing. So, the average investor has to look for these preforeclosures somewhere else. That place would be the County Recorder’s office. Any and all public documentation usually ends up in the County Recorder’s Office, also known as the County Clerk or County Record’s Office, this documentation includes copies of the NOD and lis pendens. These transactions are considered public record, including foreclosure filings, so you can simply head down to the records office to research preforeclosures that are suitable for a short sale deal.

Most County Recorders don’t put together lists of foreclosure information and their homeowner’s contact information for the convenience of the investor. So you’ll need to spend some time researching the records.

Short Sale Tips for the County Recorder’s Office:

If you search through the records looking for the NOD or lis pendens documents, you should have an easier time in your research.

By going down to the records office you are likely to get a head start on other investors, since not many people are willing to spend hours on their own research.

Take your reading glasses. You’ll be looking through a lot of documentation.

Going to the County Recorder’s Office is a FREE method for getting preforeclosure information.

Many County Recorder’s Offices have gone through the effort to put their documents online. This makes it so much easier when doing your short sale research. It never hurts to check online before heading down to the local records office, just to see if they have a website set up. Not all of these websites will provide you with the information you need. However, they should allow you to compile a list of names and document numbers that you can look up later on in the records office.

Short Sale Tips for Preforeclosure Research Online:

Try looking for a website. Many County Recorder’s Offices have websites where you can search through all of their documents.

When searching through a County Recorder’s online database look for the NOD or lis pendens as you would in the actual office.

Using a County Recorder’s website is also a FREE method for finding preforeclosures.

There are a couple of other ways you can find those potential short sale deals. You can subscribe to a preforeclosure listing service, either online, sent through email or as a newsletter in the postal mail. You’ll be one of possibly millions of other investors seeing these same properties so there may be competition for good deals. You can also scan the newspapers on a regular basis. Many counties publish their current preforeclosure properties in the classifieds. This is a last attempt to notify the homeowner that the property is going to a sheriff’s sale.

A short sale begins with contacting the property owners, but first you’ve got to find them. By researching both in the County Recorder’s Office and searching online you’ll be able to find more preforeclosures than you can handle. If these two avenues still fail you, you’ll also be able to find those properties through other means, like newspaper classifieds and subscribing to foreclosure lists.



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Category : Business

Tips For Successful Real Estate Foreclosure Investing

Posted on December 29, 2008 at 11:15 am
foreclosure investing
Gerald Mason asked:


If you are interested in the real estate industry you may want to consider foreclosures.

Even though this industry has fallen off a bit, it is still a great way to make money.

The most important thing to remember about foreclosure investing is that there are many details to consider. Not only will you need to become familiar with your own situation, but you will also need to know a lot about the foreclosure industry in your area.

But with that being said, foreclosure investing is not a difficult thing to do. If you become familiar with all of the small details you can be a success in no time at all.

The first thing you need to know about foreclosure investing is how it works. Generally speaking, a foreclosure is a property that the bank owns due to the fact that the owner of the property neglected to pay his or her mortgage.

In turn, the bank owns these properties and is forced to sell them back to the public in order to recover the money that they lost. And to go along with this, the bank usually attempts to sell foreclosures quickly because they are not making any money by holding onto them. All of this works out to the advantage of a foreclosure investor.

Getting started with foreclosure investing is quite easy. Now that you know what foreclosure investing is you need to know where to find the properties.

There are several ways that you can do this, and you should look into each option so that you get the best selection possible. Search the newspaper and online and you should not have any problems finding foreclosures to invest in.

When you are finally ready to buy a foreclosure property you will need to become familiar with the steps necessary in your area. Buying foreclosures is different for each county. Some of them have foreclosure auctions once a week, whereas others only have them once a week. It really depends on where you live, and how your county operates.

Overall, foreclosure investing can be a great way to make money. You may have to learn a bit about the industry before starting, but after you are comfortable with what is going on you should be well on your way to success and when you finally begin to realize what foreclosure investing can do for you, you will then be able to make the most out of every transaction.



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Category : real estate

What You Should Know About Foreclosure Investing

Posted on November 13, 2008 at 4:34 pm
foreclosure investing
Masni Rizal Mansor asked:


If you are interested in a way to get involved in the real estate industry you should look into foreclosure investing. Many people avoid this type of investing because they are not aware of the details that go along with it. By simply learning about foreclosure investing, you will be able to join this industry in no time at all.

The first thing that you need to know about foreclosure investing is who you will be buying the house from. Foreclosed homes are properties that have been taken over by the bank because the past owner failed to pay his or her mortgage. When this happens, the bank then needs to sell the property back to the public so that they can start to collect a profit again. The longer that the bank sits on a foreclosed home, the more money they are going to lose.

Being that banks are always in a hurry to sell properties back to the public, the buyer definitely has a huge advantage; this is what makes foreclosure investing so profitable for thousands of people ever year.

When you are looking to get into foreclosure investing you should realize that you will be able to find properties that are greatly discounted. It is not uncommon for a buyer to be able to find a property for up to 40% off of the market value cost. By purchasing properties at this price and then selling them back to the public, you can make a lot of money.

Another reason that foreclosure investing is so popular is because there are a lot of these properties to go around. In almost every city in the United States there are foreclosure properties available for purchase. The only thing that you have to do when getting into foreclosure investing is find the homes that you want, and decide how much you are willing to pay for them. This can be done by simply scouring your newspaper, or joining a service that will supply you with homes in your area.

Overall, foreclosure investing is a huge industry at the present time. There are people all over the country that have turned their love of foreclosure investing into a full time job. If you are interested in getting involved with the real estate industry, there is no better way to do it than by investing in foreclosed properties.



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Category : Finance

Housing expense ratio reaches alarming levels

Posted on October 9, 2008 at 8:13 am

Housing expense ratio reaches alarming levels

More than 7.5 million American people — almost 15 percent of homeowners nationwide with mortgages — spent half their incomes or more on housing costs in 2007, according an Associated Press report that examined data just released by the U.S. Census Bureau. In addition, about 19 million homeowners — nearly 40 percent of homeowners throughout the [...]

More than 7.5 million American people — almost 15 percent of homeowners nationwide with mortgages — spent half their incomes or more on housing costs in 2007, according an Associated Press report that examined data just released by the U.S. Census Bureau.

In addition, about 19 million homeowners — nearly 40 percent of homeowners throughout the nation — are now considered “financially burdened,” spending at least 30 percent of their incomes on housing.

That’s bad news for countless families located across the United States who are finding it harder and harder to make ends meet.

Of course, hindsight is 20/20. And if mortgages were issued correctly perhaps it could have helped minimize the recent affects of the housing downturn on both sides of the deals (lenders and borrowers).

To do that, lenders and buyers across the board should have followed a safer debt-to-income ratio standard that historically hovers around 28 percent.

Here’s how that looks:

  • Yearly Gross Income = $45,000 / Divided by 12 = $3,750 per month income
  • $3,750 Monthly Income x .28 = $1,050 allowed for housing expense
  • $3,750 Monthly Income x .36 = $1,350 allowed for housing expense plus recurring debt

Clearly, this is not the only reason behind the current economic mess, but it is certainly a contributing factor. Mix in balloon mortgages, rising debt, unemployment, fuel prices and several other ingredients and we can see the reason foreclosures are occurring and the economy is struggling.

For information on how to avoid and/or stop foreclosure click here.

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Category : Industry News

Southern California home sales drop to a 20-year low

Posted on February 28, 2008 at 11:06 am

Southern California's housing slump hit a new bottom last month, despite low interest rates, falling prices, and promises of government assistance.

According to statistics, less than 10,000 homes were sold in the six-county region. That's the first time that has happened since DataQuick began keeping records in 1988.  Additionally,  1 out of 4 homes sold had been foreclosed, putting additional pressure on home values.
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Category : Industry News

Foreclosures up 57 percent in January

Posted on February 27, 2008 at 12:07 am

The number of homes facing foreclosure rose 57 percent in January compared to a year ago. Lenders are being forced to retake possession of homes they couldn’t unload at auctions, a mortgage research firm said Monday.

According to RealtyTrac, over 233,000 homes have recieved at least one notice from lenders related to overdue payments.  Nearly half of the total involved first-time default notices.

The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms,

Category : Industry News

Federal judge refuses to block foreclosures

Posted on February 15, 2008 at 12:53 am

Homeowners facing foreclosure could have a hard time defending themselves.  A federal judge has refused to temporarily block many Hennepin County foreclosures.Judge Joan Ericksen on Wednesday denied a request for a temporary restraining order against foreclosures initiated by a national electronic mortgage registry. The case is being closely watched by the real estate financing industry because the registry initiates an estimated 40 percent of metro-area foreclosures.

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Category : Industry News
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