Capitalize on Pre-Foreclosure Listings For Potentially Higher Profits

A home that is a pre-foreclosure listing is one that is in between the time when the first Notice of Sale has been issued by the bank, and the actual foreclosure auction where the home sells or the bank takes possession. There are ninety days given to the home owner to clear up the outstanding debt on the home, before the actual foreclosure happens. During this time an investor, or home buyer, has a great opportunity to capitalize of the pre-foreclosure listings.

Find Quality Pre-Foreclosure Listings

To get the best deal, you need to find the best quality homes. Look in the weekly newspaper for pre-foreclosure listings, and check out your counties records office. These will have the recent listings for you to check out.

Get A Home Inspection

If you find a home that you might be interested in take this opportunity to have a home inspection done. You might have to pay for this, but it is worth it if you plan to go ahead with purchasing the home.

Two Buying Options

After you know that the pre-foreclosure listing can be a good investment opportunity, then you have two options open to you as a buyer.

First, you can make an offer directly to the home owner themselves. Get your offer in writing, this is made a lot easier when you get a real estate agent to help you, and present it to the home owner. During this time, if the owner is still in the home, they will want to sell to avoid actual foreclosure and any credit damage. Most times, a pre-foreclosure listing can be bought here and at a very good, below market value price.

The second way is to wait until the foreclosure auction. If you have determined that the home is worthy of bidding on, and the homeowner is either absent or doesn’t want to sell for a lower price, then you can bid at auction.

Free Tax Foreclosure Listings

Tax foreclosure is a situation in which the home owner is unable to keep up with their government property taxes. In this situation, the government tax agency takes possession of the property and sells the it as soon as possible. The process of foreclosure goes on; the main objective of the agency is to sell the property very soon. They sell the property at a very low price, which is often even less than the market price.

How to Get Started with Tax Foreclosures

There are tons of online foreclosure listing services available. Nevertheless, before you subscribe to a service do several studies, as the superiority of every service can very from one to another. Find out where they gather their information. Also find how frequently they update the foreclosure listings and how regularly old listings are removed. The best foreclosure listing websites are usually voted to be the most major sites. These sites have been around for years, and have developed a solid reputation for quality properties.

Browse Online Foreclosure Listing, Free of Charge!

If you have any problem in paying the monthly fee which is charged by all major sites, then there is no difficulty. The majority of websites offer a 7 day free trial membership, through which you are granted full access to all the listing of the websites. These free trial memberships are the perfect way to get started with tax foreclosures, right now. You can even try out the trial membership from more than one website, which will allow you to find your favorite.

How Any Real Estate Agent Can Generate New Leads & Listings from Foreclosures

The title to this article is a pretty bold statement, but if you’ll allow me a couple of minutes of your time today, I’ll show you how you can take advantage of a brand-new Real Estate niche that most Agents don’t know about. It’s not that they aren’t aware of it; it’s just that they haven’t put two & two together.

This new source of Real Estate Leads could mean another 100 – 600 new, very motivated (Seller) Leads that are desperate for your professional help. And that’s only for a market of 100,000 homes. You’re market could have even more.

Why hasn’t this opportunity been available before?

Well, before now all the pieces were not readily available. Today, the technology is in place, the turnkey business-in-a-box-training-systems are available, and the market for this business is very ripe & growing.

Foreclosures will be the next big thing in Real Estate Leads

We are often asked by our Coaches Corner{tm} Newsletter Subscribers (350,000+): “What’s the next big thing going to be for Real Estate Agents?”

Well, if you asked me that question specific to Real Estate Lead Generation, I’d have to say Foreclosures & PreForeclosures are going to be the next big thing for New Real Estate Lead Generation.

You’ve probably already heard that Real Estate Foreclosures, as of April 2007 U.S. Foreclosure Market Report (published by RealtyTrac® – the #1 online authority for Foreclosure data), are up by 62% nationwide from April 2006. Some states are up by as much as 3,325% (New Hampshire).

Real Estate Foreclosures Rates continue to grow

Recently USA Today printed an article about the fact that 75% of the new home mortgages in California are No-Doc-Loans (some industry experts call them liar-loans). These No-Doc-Loans allow the homeowner to use stated income and often allow them to borrow more money at higher debt-to-income ratios than they could traditionally. The no-doc loans have become very prevalent in the last couple of years and are now widely used nationwide.

In my opinion, the majority of these liar-loans are Real Estate Foreclosures in embryo. It’s likely just a matter of time before the homeowners get into trouble and fall into Foreclosure.

Over a Million Real Estate Foreclosures Each Year

According to RealtyTrac®, with whom we’ve established an exclusive partnership, the number of Foreclosures will likely exceed 1.2 million this year if we continue at this pace. To read the complete May 15th, 2007 press release for RealtyTrac®’s U.S. Foreclosure Market Report click here.

What this means for the average Real Estate Agent in a market with 100,000 households is that about 127 new properties will enter some state of Foreclosure per month. Some of the not-so-average counties will see 431 new foreclosures per month for those same 100,000 households. So, that means that there will be 14 new Real Estate Foreclosure Listings per day per 100,000 households.

If you had the home seller information in a timely manner and were equipped to deal with this specific type of lead, it could mean 100 – 500 brand new leads every month in a market with 100,000 households.

Most Real Estate Agents don’t know how to handle prospects in Foreclosure and usually see them as junk prospects. So, there’s very little competition for you in this niche if you become a Real Estate Foreclosure Expert.

Couple that with a very highly motivated home seller, and you have a recipe for New Lead Generation Success.

Do you know your State’s Foreclosure Rate? If it’s only the national average, you’ll have 1 Foreclosure for every 783 households like quite a bit of the country? How many households do you have in your market, and what does that equate to in Foreclosures? A whole lot no matter where you live!

The Foreclosure Rates are growing almost everywhere and there are already an enormous amount of potential leads for you where you live, so take action and equip yourself with as much information as you can on Real Estate Foreclosures. The information will help you carve out a brand new niche in Real Estate Foreclosures in your area and help you grow your Real Estate Business.

Working With Government Foreclosure Listings

Even if you have been in the business for many years, you should understand that there is always room for learning new things. Although you might have been used to searching for a foreclosed property the old fashioned way (auctions, classifieds, etc), you should probably consider subscribing to online government foreclosure listings.

It is a fact that information today has become easier to obtain. All you need is an internet connection and a computer and you are good to go. This is probably the reason why many find online listings to be very convenient. In addition, they also possess the following qualities:

User Friendly

You do not need to be a computer expert to navigate through government foreclosure listings. Although they could contain as many as 1.5 million foreclosed homes in their database, you can browse them easily by utilizing the search feature. You can look for a property by the number of bedrooms and bathrooms, state, zip code and price range. There are also photos that come with every listed property so that you can see what they look like and not rely on the description alone.

Filled with Useful Information

Aside from the details about the repossessed properties, you will also benefit much from the other information that can be found on the site. For example, some brokers provide the members with regular industry news or articles, updated mortgage rates and links to websites of government agencies like the HUD, Freddie Mac or Fannie Mae. You can actually consider the listings provider as you partner in your foreclosure investing business.

Reasonable Fees

If you consider the money and time that you will save with these government foreclosure listings, you will think that the subscription fee is more than reasonable. There are even providers who offer trial membership for a lower fee. You might want to take advantage of such offers since it could provide you with a way to check out the quality of the listing without making long term commitment.