How to Find ForeclosuresWhen investing in real estate for a flip, knowing how to find a foreclosure property is critical to making big profits.

Quick scenario…

The owner is behind on their mortgage and the lender is threatening to take back the house.

The owner would lose any and all equity in the home and have a bad scar on the credit report. Finding an owner in such a position means finding a home that can be a real bargain while helping the owner out of a bad situation.

A lender that files for foreclosure has already gone through certain legal steps required before a foreclosure can take place.

The first legal action a lender takes is filing a Notice of Default, or NOD at the county office.

This notice is indeed a public record, available to anyone who chooses to research such records. An NOD is filed when a borrower misses two consecutive payments.

If the borrower misses three payments in a row, then a foreclosure filing can take place.

This filing is also a public record and how real estate investors can find foreclosure properties.

Here’s a few tips on how to find foreclosure properties…

You can visit the county office where foreclosure notices are file personally or you can subscribe to various services that provide foreclosure information directly to you.

The key to finding a foreclosure is getting there first.

Foreclosure services that provide foreclosure data to subscribers update their database on a regular basis but the information is not updated daily.

Some services update their information once per month which means a foreclosure filing recorded on the first of the month may take 30 days or more to appear in their list of foreclosed properties.

If you visit the county office weekly, you can find fresh foreclosure filings, giving you the opportunity to contact the owner before others do.

Getting the information about foreclosure filings before others gives you the inside track.

If a seller is indeed desperate and seeking a way out of their situation quickly, often the first offer is the accepted offer.

If you want to know how to find foreclosure opportunities, here’s my answer… “be a regular at the county recorder’s office.”

Talk soon,
David Slabon