| time you turn around, the word "foreclosure" is all over | | | | advertising play a huge role as well as networking. |
| the news! So, if you're a homebuyer looking to buy a | | | | 2. Pre-foreclosure: This is the "hotspot" for investors. |
| foreclosure property or an investor wanting to learn | | | | This is when people are getting hundreds of letters |
| how to invest in foreclosure property, then you're | | | | and postcards from hungry foreclosure investors. This |
| timing couldn't be better! | | | | stage can last several weeks to several months or |
| There is a lot out there on foreclosures; from how to | | | | even longer. The key to finding foreclosure properties |
| stop your own foreclosure to how to "get the deed". | | | | at this stage is consistency and persistence. There are |
| You could probably go to a different foreclosure | | | | a number of strategies that you can use at this time |
| seminar every other night for a month to learn the tips, | | | | ranging from door knocking to a sequential foreclosure |
| tricks and tactics. | | | | mailing and anything in between. |
| But... none of that matters unless you know how to | | | | 3. Foreclosure: We define this stage as the "auction"; |
| FIND FORECLOSURES. It doesn't matter how you | | | | the actual sale at the courthouse. This is not |
| negotiate with homeowners, what you say to the | | | | recommended for home buyers simply looking for a |
| banks, or what paperwork you need to have if you | | | | great deal on a foreclosure property nor do we |
| don't find the foreclosures first. | | | | recommend it for an investor unless you are quite |
| We define 4 marketing stages during which you can | | | | advanced and have a good team working with you |
| find foreclosures: "pre" pre-foreclosure, pre-foreclosure, | | | | because there are a lot of considerations that could |
| foreclosure auction, bank owned real property (after | | | | wind up costing you money if you're not careful. |
| the foreclosure) | | | | 4. Real Estate Owned (Bank Owned) Foreclosures: |
| 1. "pre" pre-foreclosure: This is the one that most | | | | Foreclosure properties reach this stage when nobody |
| people are confused about! This is NOT the same as | | | | purchases the home during the first 3 phases and the |
| "pre-foreclosure". This is BEFORE the foreclosure | | | | bank takes it back. There are lots of good deals to be |
| ever even begins. It's the time during which the | | | | had once the bank takes back the foreclosed |
| homeowner realized he/she is going to be late on | | | | property. You will need a good Realtor that knows |
| payments - or is even a couple of months behind - | | | | how to handle the banks to help you here, but you can |
| and the point at which the bank starts the formal | | | | find foreclosure deals well below market value here. |
| foreclosure process. Properties you can find at this | | | | Each of these 4 stages of provides great |
| stage are "gold" because the homeowners aren't yet | | | | opportunities for finding foreclosures. Depending on |
| being bombarded by foreclosure investors. Finding | | | | where they are in the foreclosure process will |
| pre-foreclosure sellers here takes a little more | | | | determine how you will locate the sellers, how you will |
| creativity and ingenuity. This is where marketing and | | | | market to them, and how you negotiate the deal. |