CHAPTER

How to Find Foreclosures

In this chapter we will teach you how to find foreclosures. You have to be a pretty good detective if you are going to be a successful real estate investor. You have to be a great detective if you are going to be successful investing in foreclosures. You are looking for the owner in distress.

We are going to give you the 13 key words or phrases that we look for when we go through classified ads, work with our personal contacts, do our own scouting, visit open houses, or work with a real estate agent. When you see or hear one or more of these words or phrases, youll know that you have found the right seller.

Finding Properties in Pre-Foreclosure

Finding properties before the notice of default occurs can be difficult. There is no official public record available to you that would alert you to a property owners financial troubles. Instead you have to search for clues to their financial troubles as well as being proactive seeking opportunities in the pre-foreclosure phase.

Clues to an owner in distress include deferred maintenance on a property or the look of a property being abandoned. Other clues are general lack of care by the owner or tenant or frequent official deliveries of notices to pay.