Saturday, March 25, 2006

How to Find Good Pre Foreclosure Properties Using Craigslist

How to Find Good Pre Foreclosure Properties Using Craigslist

As some of you might recall, my attempt at showing you How To Find Foreclosed Properties Using Craigslist video was a failure.

I’ve figured out what needs to be done and the video will be re-done using different technology. But in the meanwhile, several readers asked questions and needed some more guidance.

Here is a step by step procedure as to how I find foreclosed or preforeclosed properties for free using a free service called Craigslist.org

Goto www.craigslist.org

1. On the right side of the screen, choose the major city nearest you
2. Under “Housing” section choose Real Estate for Sale
3. Under “keyword” box, enter “foreclosure” or “preforeclosure” or pre foreclosure”

I am looking for a beach front foreclosure property so I will be placing the following strings in the search box in order:

* Beach front foreclosure
* Beachfront foreclosure
* Beach foreclosure
* Beach-front foreclosure
* Beach front foreclosed property
* Beach front pre foreclosure
* And if all else fails, simply “beach front”

My wife has been asking to move near the ocean and I will be spending the next 2 months searching for a below market property. In fact, I will add “below market beach” to my list above.

This will take about 10 minutes. From the results, I will scroll through the listings and pick out 10 to 20 properties that look promising. I pay close attention to the wording and description and in particular, any hint of urgency to sell the house.

I will jot down the results in an excel spreadsheet with the following fields:
1- Address
2- Phone number
3- Square footage
4- Price
5- FSBO* or Broker
6- Notes
7- Zestimate*** FSBO denotes For Sale By Owner
** Zestimate denotes the approximate value derived by a free online home evaluation service www.zillow.com . I wrote a blog on zillow.com HERE

From the information gathered, I will sort based on relevance, value, my interest or any other factor which will make it easier to evaluate this search.

I’ll contact the sellers or brokers and ask them questions about the foreclosure property.
1- Condition of the property
2- At what stage of the foreclosure process are they in
3- Any assumable financing
4- Any owner financing (i.e. will the owner carry back a note)
5- How long before the house reverts back to the bank
6- How many bedrooms and bathrooms
7- Total amount of liens and late charges on the loan
8- How long on the market

Every question will be in a conversational mode and I won’t be bombarding the homeowner with questions.

It is important to be considerate of the homeowner. If he is in foreclosure proceedings, chances are he is experiencing a lot of stress in his life and you must be conscious of their feelings. (This is simply good manners)

Ok back to the search…
My search for the following list turned up nothing in the Los Angeles area.

* Beach front foreclosure
* Beachfront foreclosure
* Beach foreclosure
* Beach-front foreclosure
* Beach front foreclosed property
* Beach front pre foreclosure


I will repeat the search for the same list in the San Diego and other locations till I find something that appeals to me.

In the meanwhile, I came across the following property with a price reduction and it looks very interesting. It is not a foreclosure and it doesn’t seem to be below market, but I have a friend who’s been looking for a beachfront house in Malibu and this might be perfect for him!

Which reminds me to blog about 4 ways to make money with a foreclosed property even if you don’t buy it!!!

I think I’ll blog it next week. You guys and gals will love it.

Ok lets wrap this up because it is getting a little long.
You found several properties. Put them in a spreadsheet. Got their Zestimates. Called the owners/brokers and now you have some facts and information to proceed.

Craigslist is one of the best sources for free property and foreclosed home listings.
Anyone can list there and it doesn’t cost anything. So be prepared to weed through a lot of garbage listings before you find the few good ones.

Good luck and feel free to send in your questions.

Ed

filed under: foreclsoure property research

Thursday, March 23, 2006

Michigan Foreclosures Double In 2 1/2 Years

Michigan Foreclosure doubles in 2 1/2 years!

I came across this news article by API reporting as reported on Mercury News on Michigan Foreclosure rates:

"The number of homes undergoing foreclosure in Michigan doubled from February 2004 to February 2006 to a rate that is 2 1/2 times the nation's, according to a group that monitors foreclosures"

But then something more AMAZING popped up at me and I hope you'll see my point in a minute. The news article not only talks about Michigan Foreclosures and Foreclosure Listings but then it goes to state the fact the lenders lose up to $50,000 on the resale of each foreclosed property!

"Lenders lose up to $50,000 per foreclosed house as they sell them off at below-market prices. That can lower property values in neighborhoods, drive other residents away and hurt property tax collections for local governments"


What this is indicating is a rapid rise in House Foreclosure rates and if you position yourself properly, you can pick up some gems out there.

I know of people who travel around the country and attend foreclosure auctions and only pick up the select few foreclosed and distressed properties.

filed under: foreclosure investing

Wednesday, March 22, 2006

Foreclosure rates increasing in many U.S. housing markets

Foreclosure rates increasing in many U.S. housing markets

Foreclosure listing services are reporting increased foreclosed numbers. And again, the wise foreclosure investor will be ready to monetize on this opportunity. I've quoted a little of the article here but suggest reading the entire article found in the source section below.

"RealtyTrac, a California-based firm that tracks the state of the national housing market, says default notices to bank ownership, i.e., foreclosures, rose 45 percent in January from the same period a year earlier. There was one new foreclosure for every 1,117 U.S. homes."

The report goes on to say...

"RealtyTrac said, although the number of foreclosures is low from a historical perspective, it has been rising steadily in the past year. With the rate of appreciation dropping and interest rates rising, a number of economists and industry observers expect the pace of foreclosures to speed up this year.

The highest foreclosure rates, according to MSN Real Estate, on a per capita basis are Georgia, Nevada and Colorado. In Georgia, the rate leaped 88 percent in January from the previous year. The publication also reported Georgia was No. 5 for the total number of foreclosures."
source: http://www.rockrivertimes.com/index.pl?cmd=viewstory&cat=2&id=12746

filed under: foreclosure investing

Indiana Hit Record Foreclosure Numbers

Indiana Hits Record Foreclosure Numbers

"Indiana’s home foreclosure rate hit a record high in the last three months of 2005, and the state has led the nation in its rate of foreclosures since July 2004.

The Indianapolis Star reported that in the last quarter of 2005, more than 7,000 Indiana homeowners faced foreclosures. Why? The Star story attributed the boom in going broke to layoffs, personal bankruptcies and people taking lower-wage jobs as higher-wage work disappears. To that list, one could add that too many people don’t leave any slack in their budgets or build up the kind of savings they need to carry them through at least a few jobless weeks."
source: http://www.fortwayne.com/mld/newssentinel/14159468.htm
The more research I do, the more convinced I am that a wave of foreclosures is not far off.
This will be one of the greatest opportunities for Foreclosure Investors as the houses will be bought and sold quickly.

You see, the demand for homes remains high and as long as mortgage rates remain low, demand will be strong. But make sure you are buying in areas where (1) density is high (2) unemployment is low (3) inventory is low and (4) Mortgage money is in large supply.

filed under: foreclosure investing

Tuesday, March 21, 2006

HUD Foreclosure Homes for Sale

Hud Foreclosure Homes for Sale

This is a direct link to HUD's government site.
It's free and you can often find small gems in there...
http://www.hud.gov/homes/homesforsale.cfm

Now go find a Home ;)

filed under: Hud Foreclosure Homes for Sale

My Foreclosure Research Using Google Video a Failure

Secret Tip: Foreclosure Research Video Using CraigsList

I tried uploading my screen-cast video on GoogleVideo and it came out VERY blurry.
I'm not sure what the problem is and how to solve it but I've got an email to GoogleVideo and will try to get the Video redone and re-uploaded for you all.

Sorry about this.
For those of you who are brave enough to see this TERRIBLE quality video, you can see it below.



Bear with me and I'll re-do the video with some better software.

Filed under: Foreclosure Property Research using Craigslist