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How to Use Foreclosure Listings
Foreclosure listings provide a wealth of information that is crucial to the success of anyone interested in real estate investment. Using these listings can often mean the difference between making a profit and losing money.
Before foreclosure listings can be used to assist in real estate development, a potential investor needs to understand the possible uses of those listings.
First, foreclosure listings will provide you with the current owner and the address of the property, with some even offering maps. If the foreclosure is not the owner’s primary address, the listings will usually include their current mailing address. You can use this information to your benefit in four ways:
With address and owner information, you are able to search the title records for the property before attempting to purchase. This will tell you what names are on the title, as well as whether there are any other liens against the property. If there are other liens, you will be able to factor those into the cost of the home when calculating potential profit. In the end, this could save you a great deal of time and money.
Having the address allows you to check out the property. You can drive by the home and get an idea of the exterior and landscaping condition. The address also allows you to check on the surrounding neighborhood. You can find out what advantages and disadvantages exist for someone living there, such as being close to schools or having a high crime rate.
You will be able to determine the true market price for the home. Regardless of how wonderful the home may be, it will not sell high if it is in a dilapidated, crime-ridden neighborhood. The home also will not sell for more than similar homes in the area.
If the home is in pre-foreclosure, you have the necessary information for contacting the owner to discuss the possibility of buying the home. You will have the owner’s name and address, which makes it easy to find a telephone number. You will also know exactly who can sign the title and sales contract, which tells you who to negotiate with.
Many foreclosure listings will tell you the original loan amount for the property and the date the loan originated. If you are investing in real estate in states like Texas, where the amount in default is confidential, you will have the information necessary to estimate the default amount. Knowing the approximate amount owed will also help you when negotiating with owners and lenders.
Finally, you can use foreclosure listings to help you select properties of interest. If you only want to invest in single-family residences, the information contained in foreclosure listings will save you the time of researching multi-family units. If you are only interested in tax foreclosures, you can eliminate listings for bank foreclosures. For those who are investing, foreclosure listings will also help you eliminate the properties that require the buyer to occupy the property for a specific period.
Foreclosure listings can arm a potential investor with all of the necessary information to be successful in real estate investing. The key is to use those listings in every step of the process.
About the Author: Alex Diaz has written widely on foreclosure and real estate. Visit his website, Foreclosure Deals for information and Bank foreclosures