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If you are an impulse shopper, then it is not recommended that you attend a real estate foreclosure auction in order to get a deal on a house (whether to live in it or to invest in it).  Auctions give off a sense of urgency worse than your bladder does after guzzling a two liter bottle of cola.   If you are serious about getting property in a particular area, then you will be better off with watching HUD foreclosure listings like a hawk.

Get That Mouse Clicking

In order to find HUD foreclosure listings in your desired area, you first need to get to the Housing and Urban Development’s home page at hud.gov.  This will take you a series of links all about how to bid on a HUD foreclosure home and about what is (and isn’t) included in a HUD house.  Most importantly, there is a listing of states for the HUD foreclosure listing in those states. 

Fore example, let’s say you want to see all of the HUD foreclosure listings in Lancaster, Pennsylvania.  You click onto Pennsylvania link and you will most likely get a warning that you are leaving HUD’s home page to another web site.  This is nothing to be alarmed about.  Click on to “Go on to web site requested”.

This will take you to the Pennsylvania HUD approved broker, Hooks Van Holm.  Yo see that there is a long list of Pennsylvania towns and cities, but certainly not a comprehensive list of all the towns and cities in the state. These happen to be the only ones with a HUD foreclosure property in them. You scroll down to find Lancaster and click the link.You might also heave a sigh of relief to see that your home town is not on the list (if you happen to reside in Pennsylvania).

Bidding Process

You make the bids for the homes on a HUD foreclosure listing in much the same way you would bid for an item on eBay.  You have a long time to make up your mind and aren’t pressured.You do need to inspect the property yourself and to get a home inspector to go over it.  Never bid on a HUD property sight unseen.

The first ten days that a HUD property goes up for “auction” is reserved for bids from the previous owners (should some miracle occur in their financial lives) or for people who want to actually live in the home.  On day eleven onwards, the bids are opened up to real estate investors or “flippers”. 

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There are many different names for a house that’s been foreclosed upon because the owners couldn’t keep up with mortgage or other payments.  One of the names that these properties are referred to is real estate tax foreclosures.  In many states in America, the property tax costs thousands of dollars.  People can loose their homes from not being able to pay this hefty tax.  For whatever reason, a foreclosure is a foreclosure.  Here is some foreclosure help on how to buy these homes.

Who Owns The Home?

In the case of a real estate tax foreclosure, the government assumes ownership of the foreclosed house or business.The government does not want to keep their real estate tax foreclosure properties and are looking to dump them as quickly as possible for whatever price they can get.  This is your tax dollars at work, ladies and gentlemen.

One of the advantages of having the government own the home (however briefly) is that they list real estate tax foreclosures all over the place.  A foreclosure or property sale is a matter of public record.  Another advantage is that the government is eager to sell.  However, the government is not too interested in making any deals. 

Make A Checklist

Most real estate tax foreclosure properties are sold “as is”.  That means if the home is in crappy condition, you will be responsible for fixing it up.  This is different from traditional home sales, where the owner usually has to make repairs as part of the deal.  This means you have to hire a home inspector to give you a report on the real estate tax foreclosed home.  Don’t trust anyone else’s home inspector.

Many real estate companies in the area often work with the IRS in order to sell real estate foreclosed homes.  You need to check with them about finding out just how much property tax is owed, and what other fees are.  Other fees can include transfer of home title.  You also need to find out what the current assessment on the property is so that you know if you can afford the property tax.  Never assume you can sell within one year of purchase.

The real estate company may also be able to give you a free history of the real estate tax foreclosure property, but usually you have to pay a fee for that, too.  You need to see when major repairs were made and if the home was damaged by an natural or unnatural disaster.

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You’d have to be dead not to be moved by the foreclosure stories in the press, on television and maybe even in your own neighborhood.  Americans in particular find their identity through their homes.Although a house does not make a home, any kind of foreclosure can drive a person crazy.  This is now the best and worst times for real estate foreclosure investing.

Sticks And Stones

It is recommended that you keep your enthusiasm for real estate foreclosure investing to an absolute minimum.  Although there is nothing illegal in real estate foreclosure investing, the current American recession has made the general public very easily angered.  The general public looks at the turmoil, weeping and destruction around a simple HUD foreclosure home and then assumes that you are a heartless Scrooge for being into real estate foreclosure investing.

The best thing you can do in this situation is not to argue back.You quietly do the best you can with the foreclosure property that's fallen into your lap and turn it onto a home for someone.  If you believe in a God of some sort, than you can pray for the people who were kicked out of the home you now own.  By giving generously to homeless shelters and Habitat for Humanity, you also prove that you are putting your money back into the community and not just in your pocket.

Trust In Allah, But Tie Up Your Camel

It also is a sad fact that some people are trying to take revenge in any way they can on anyone who takes possession of their former home.  On the morning of this writing (July 24, 2008) a Massachusetts woman committed suicide in a foreclosed home that was going under auction.

It has been suggested by housing experts that as the America housing crisis grows, so will the revenge patterns.  Homemade bombs are being found, tons of pets locked in a home to die of starvation and someone leaving a ten foot alligator with attitude has also occurred.In this day and age, you need to keep your identity a secret and get a good security system for your home. 

You need to keep your guard up about strangers coming around your house, calling your or offering business proposals.  You need to educate everyone in your family not to talk to strangers, or let a strange person in the home.  Even though you might trust that no one will so crazy as to try to hurt you over real estate foreclosure investing, you never know.  As the old saying goes, “Trust in Allah, but tie up your camel.”

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I have spent years buying and selling homes and throughout my time I always wondered why it was so difficult to find a quality foreclosure listing service.  Part of me wondered why banks were not doing more to promote this and why they were not setting up a quality foreclosure listing service to promote their homes.   You would think that a consolidated foreclosure property listing would only help them to sell unwanted property and cut their losses.

Well finally someone has compiled a comprehensive foreclosure property listing – freeforeclosuredatabase.com.This website has everything I need to make finding foreclosures a breeze.  Read on to find out more details and why I use them exclusively now.

Using The Foreclosure Listing Service

This foreclosure listing service website is simple, but allows you to search for properties in many different ways. You cab drill down by selecting a state, then a city, then a zip code and down to a specific neighborhood.  You can filter by price range, agent, brokerage firm or property type.  Some listings have pictures while other do not.  Even with a picture there is no substitution for seeing the property yourself.  Be sure you are able to see the property before even talking about purchasing. Many of the properties that this foreclosure listing service advertise have maps to show you the exact location of the property, so you can just get out and drive around to look at some in your area.

You can check out the neighborhood and exterior of the house before even showing interest in the property. Are there schools, parks or other amenities nearby?  Are the surrounding properties in good shape and well maintained?  Has the property been kept up or will there be a lot of costs associated with giving the property some curb appeal. If the outside of the property and the neighborhood looks good, then you can contact an agent to tour the rest.

If you have the means to do some real estate investing this foreclosure listing service could help you to find the perfect house to make a profit.  Just remember that in today’s real estate market you may have to hold the property longer than you expected, and things could get worse before they get better, so the risk is high.  But a well-timed house flip could net you big profits if you do your homework and get the help that you need.

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With the recent down turn of the real estate market many astute investors are turning toward foreclosure properties in an attempt to find a way to make quick money.While in some cases this may work, finding a quality foreclosure property listing is not an easy task. 

What To Look For When Selecting A Foreclosure Property Listing

The first thing you want look at are any pictures of the property.  These should be prominently shown in any quality foreclosure property listing.  While a photo will not tell you right off the bat whether you should invest in a property, but it can let you know if you should not.  Before even going out onsite to look at a foreclosure property listing make sure that you get a picture even if there is not one in the listing.

The next thing you want to look for in a foreclosure property listing is who the broker who is handling it is.  This will give you an idea of what you can expect from the property as brokers will generally specialize.  Pick a broker and look at several properties that they have to offer so that when you go out you can examine many properties at once.This is the best way to maximize your time and canvas as many different properties as you can.  In addition you are going to want to find foreclosure property listings that are close to each other.  This strategy also helps to maximize the potential of your property as just about anything in the home can be fixed or changed except the location.  A good location is the best way to maximize the amount of money you can make.

Next you want to see whether the property is a HUD foreclosure or not.  HUD homes are generally very cheap but will require a lot of work to get back into a sellable form.  I would only look at a foreclosure property listing that is classified as a HUD property if you are prepared to do a lot of work.This is not to say that these properties are not worthwhile investments, but rather that they will require a lot more work than a non HUD home.

There are many other things that you want to look at before purchasing a foreclosure property listing.  These guide lines are a good place to start, but you will need to decide for yourself what is and is not a worthwhile property to look at.

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If you know your market area like the back of your hand, chances are that other real estate investors do, too.  You won’t be the only one into real estate foreclosure investing in a desirable market area.  But you may be able to get a hold of a decent property through a Housing and Urban Development (HUD) foreclosure.  Keep in mind that with a HUD foreclosure, you will have to invest money for repairs.If you can cover that, then there's no reason to shy away from a HUD foreclosure property.

Finding Them

Whenever HUD buys a home, it becomes a matter of public knowledge.  You need to keep an eye on HUD’s website at hud.gov in order to find out where there latest purchases are.  You also need to keep checking the websites of local companies or brokers that do business with HUD. 

You want to keep an eye out for the homes in your desired market area that you know are going to be foreclosed upon.  If you can wait, chances are HUD will buy the home.They often take care of some closing or commission costs for you.  You can often bid electronically on HUD foreclosures.

Disadvantages

Just like with anything else in real estate investing, there are advantages and disadvantages with HUD foreclosures.  HUD is not interested in getting mansions in the most desirable locations in the nation.  Their homes tend to always be worth less than $400,000.  And, as mentioned above, the home will often be in need of some repair.

Another disadvantage in the eyes of some real estate investors is that the biding process is a little more complicated than for going for other properties.  First off, you are not allowed to bid for the first ten days of a HUD foreclosure.  This is to give the people who are still living in the house one last ditch chance of being able to get out of foreclosure.

Which leads to another disadvantage of investing in HUD foreclosures.  Having your home taken away from you is one of the most traumatic experiences a person in America can go through.People can do some really desperate and sick things in order to purposefully lower the property value and make your life heck.  These include destroying the property, leaving pets to die in the property or even committing suicide in the property.  You do need to realize that if you find people or pet bodies in your new property, you must contact the police so they can prosecute.

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If you are one of those forward thinking people out there that are trying to capitalize on the recent down turn in the real estate market, then you probably have been looking into foreclosures as a fast way to make a buck.  For home foreclosure listings this can most definitely be the case, but a commercial real estate foreclosure offers a bit more of a challenge.

Why A Commercial Real Estate Foreclosure Is Risky

There are several factors that make investing in a commercial real estate foreclosure very risky.  The first reason is that when you compare commercial real estate and home real estate you really are looking at two completely different categories of property ownership.  In residential real estate, primarily it is used as a home and not a place of business.  In commercial real estate, it is wholly dedicated to business.   Now if the property is a commercial real estate foreclosure, then you can bet that whatever business was located there failed and more than likely there is a reason for this.  If the reason for the failure has not changed and you are looking at an investment opportunity in the commercial real estate foreclosure, then you need to think long and hard about what you are getting yourself into.  I would be especially leery of any commercial real estate foreclosure that looks too good to be true because more than likely it is.

The next reason you want to be very careful of a commercial real estate foreclosure property is there probably was not anyone every living there.  At least with a residence you can assume that any damage caused by the people could only be so much as they were living in the property, this is completely not the case with a commercial property.  Years and years of neglect and misuse could be hiding in the establishment as the owner tried fruitlessly to use all his money to keep the business a float.  Obviously since the commercial real estate foreclosure is in effect this was not successful, and you can bet that the previous owner stripped everything he possibly could out of the property.

It is for these reasons I would be really careful before plunking down my hard earned cash on a commercial real estate foreclosure.  You may think otherwise, but I advise caution.  In the end the decision is up to you, whichever way you decide do your research completely.

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If you are looking to take advantage of the recent down turn in the real estate market foreclosure listings are great places to start.   There are many free foreclosure listings that you can look through to find some with potential, however before you do so you probably are going to want to know what to look for.

A Simple Foreclosure Listing Guide

The first thing you need to understand before looking into a foreclosure listing is how the process works and what is involved in the process.Most people that begin looking at a foreclosure listing have an idealist view of who the previous owner was.  Most imaging that it was someone who fell on hard times and chooses to give up the house.  More than likely the person who was foreclosed on was forced to do so by the bank.This is namely because they simply stopped making payments on the home.  This can happen for a number of reasons such as being laid off or fired, the inability to continue working due to medical reasons, excessive debt and mounting bill obligation, squabbles with a co-owner namely due to divorce, or possibly even a job transfer to another state.   In all these cases you can see the reason for the foreclosure listing is probably a negative one.

Now this does not mean that all homes will be destroyed in the process of the foreclosure listing.You will need to check your state office to see how they handle the process.  In most states what you pay for the house will also contribute to how much debt gets paid off from the sale.  Again this can lead to outstanding prices on quality properties, but you do have to be careful.

The key when searching for a quality foreclosure listing to invest in is to find one in a nice neighborhood.  Just about anything else on a house you can fix, but if it is in a bad location there is nothing you can do.  Good schools and low crime are two things to look for in the area before you invest.  I would make absolutely sure of the area before doing anything and in fact I usually pick a very small geographic location to keep an eye on and I only look at houses in that area.

The next step is to go out and look at your foreclosure listing.  There is absolutely no substitution for going on site to examine a property.  There is nothing you can do to replicate this step, so make sure you include it and take your time.

If you have been trying to find free foreclosure listings but have not been happy with the results then I am here to help.   I was looking for free foreclosure listings but was not satisfied, as every web site I came across seemed to want to sell me something.Since I was just looking for some free foreclosure listings and it was in the banks best interest to show them to me I was becoming extremely irritated by this.   That is when I found freeforeclosuredatabase.com.  This website was filled with free foreclosure listings from all across the United States and gave me the properties with pictures in an easy to search format.  Some of these bank foreclosure listings can be outstanding deals.

Navigating The Free Foreclosure Listing Web Site

The first thing that you notice is how simplistic the website is.  You can quickly and easily select a state to do a search from, or enter criteria in the left hand search box.   This box is completely adjustable so you can target the area you want.  You can select a town, a zip code or simply a state to search.  This will hone you in on the houses that you want to find.  In addition you can select a minimum and maximum price range as well as property type.  For additional options you can search on a specific brokerage firm or agent if you have someone in mind to work with.   If you only want homes with images than simply check the box and those will be your results. 

Once you have entered your criteria in the free foreclosure listing search section, you can now dial in and examine the properties.   In this detail section there is a ton of good information that can help you to make a decision as to whether or not you should look at a property.   The first thing you notice is the obvious picture of the home.While you cannot for sure purchase a house based on this, you can for sure rule one out.  Boarded up, trashed roof, falling in porch, all of these things probably mean it is not in your best interest to look into the house.  Next up is the contact information for the broker who is selling it.  This way you have a point of contact to call and discuss the property.  Lastly it has the price.  This will also give you a good idea of whether or not you should invest in the property.

So as you can see this free foreclosure listing web site gives you all the information you need to start your research into whether or not you should get a foreclosed home.  If you get a chance give a quick look and see what you think.

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With the real estate market in a significant downturn, many new investors today are looking at bank foreclosure listings for bargains or first investments.  A bank foreclosure listing can be a great place to find that perfect rental property or even a do it yourself fixer upper.  In some cases you may even be able to find a gorgeous home that someone simply could not afford and was forced to give up.  There are several things I look for before going out and examining a bank foreclosure listing.

Guidelines To Looking At A Bank Foreclosure Listing

These guidelines hold true whether you are looking at a commercial real estate foreclosure or a residential real estate foreclosure.  Both properties will have similar things that you want aware of before you go out and look at a property.

The first thing you want to look at is what broker is selling the property.  This becomes important, as sometimes certain brokers will only sell properties they know they can move.If you find a quality broker you can work with on their bank foreclosure listings, then you can also examine multiple properties in one shot.  In addition they may be able to work out better deals on multiple properties that can turn into a life long relationship.  But looking at it from the start up perspective it gives you one point of contact to research and trust in as opposed to looking at many different properties.

The next thing you want to be aware of when looking at a bank foreclosure listing is the location of the property.  There are few things you cannot change or improve on when looking at a property, and the one thing that will not ever change is its location.   When investing in a property, you basically are speculating on the neighborhood that it is in.  If you can see positive things for that area five, ten or sometimes even twenty years down the road then you can tolerate an inferior home.  This is what flipping is all about, finding properties putting work in and selling them for a profit.

The last thing is the cost.This will be very important as this will directly affect your bottom line and how much profit you can pull out of the property.  This is quite possibly the most important part of looking at a bank foreclosure listing. 

Follow the steps above and you will be well on your way to making money in real estate.

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