What is a foreclosure?  And how do you find them?

Well, to start with, by definition a foreclosure is the forced sale of a piece of real estate to pay off a loan that the owner has defaulted on.  Simple enough, right?

How do you find foreclosures?  That's a common question we hear all the time.

You can certainly find foreclosures much easier nowadays with the internet; there are many sites that sell foreclosure lists for every area.
 

What's on most lists are homes that have been foreclosed on and taken back by lending institutions, government agencies like the U.S. Department of Housing & Urban Development and secondary market loan purchasers like Fannie Mae and Freddie Mac.

One of the long used ways of getting a list of foreclosures is to contact lenders directly and ask if they have a 'real estate owned' or REO department - now, these are homes the lender has foreclosed on and that are now listed with a real estate agent. Good thing is that any liens have been cleared up and many REO lists are free.

How can you tell if a foreclosure is a bargain?

Well, you need to do your homework and find out what some comps in the area are going for.  Lenders know that with some basic remodeling the foreclosed home can turn around and sell for near or at market value.

As for other sources, you can obtain a list of foreclosed homes from HUD, which backs FHA loans, by calling this toll-free number: 800-767-4483 or going to www.hud.gov. Their site also links with other government-owned foreclosures, such as from the Federal Deposit Insurance Corp.
 

Other places to find foreclosures?

• A list of foreclosures from the U.S. Veterans Administration, which backs VA loans, is available by logging onto its Web site at www.vahomes.org. 

• Fannie Mae's list can be obtained by calling 800-732-6643. You can also log onto Fannie Mae's Web site at www.fanniemae.com.

• Freddie Mac's foreclosure list, obtained through its Homesteps Program, is available by calling 800-972-7555 or by logging onto its Web site at www.homesteps.com.
   

But remember this - when dealing with government and secondary market sources, the foreclosures often need repairs.
 

Yet another way to find foreclosure properties is by contacting local real estate offices. Lenders, government agencies and others sell many of their foreclosed homes through these agents.
 

The best bargains, however, are often made by going to foreclosure auctions. These auctions have minimum opening bids, enabling a lender to recover its outstanding loan balance and any liens. If no one bids, the lender keeps the property and it becomes an REO.
 

But while auction deals may be better, only go this route if you really know the foreclosure market. You may not be able to see the inside of the home prior to the auction and then you can find yourself with a foreclosed home that needs extensive repairs or one that has tax liens on it.

 

In some instances, owners who have fallen far behind on their mortgage payments or are in default may be willing to sell to avoid foreclosure. Such owners can be found at the county clerk's office by going through records (more on that to come). Look for titles where a notice of lis pendens has been filed by a lender.

Now, given so much information about foreclosures...exactly what do I think about the whole process?

Well, I remember a while back where I read someplace that the banks would actually take less money owed to them for foreclosures, because they needed to get bad loans off of their books.  To make a long story short, I did a few simple steps and...BAM!

 And the crazy part of it was that everyone was happy!  The homeowner got his cash, the bank got their bad loan paid off, and I made a nice chunk of change for myself.

Yeah, the money was good...but the biggest thrill was that I now had the ability to make a bad deal good.  And guess what?  99% of investors aren't looking at those so-called "bad" deals.

Also, just the feeling of doing something that helped out someone else who really needed help was exhilarating.  You know, that's a major problem I had with foreclosures...I just always felt bad for the homeowners.  I'm not out to rob anyone, and I'm sure most of you aren't either...that's why this is so exciting!

 Now, more than ever, considering the foreclosure market is way over-saturated...you can slip under the radar and pick out deals that can land you $20,000 to $30,000 to even $50,000 a pop and I guarantee that 99% of other investors won't have a clue as to how you did that.

Not only that... but just having the ability to make a bad deal good gives you a huge advantage when looking for nice new foreclosures...maybe even to live in for yourself!  There's no law that says you have to sell it, either… I've heard of people picking up multi-million dollar foreclosures just to live in at ½ price!

Not a bad deal, huh?

 Think about this for just a second...

Because banks are in the business of loaning money...not doing real estate deals.  They're just not set up properly for them.  Go call any banker and ask what they know about real estate.  Chances are it will be next to nothing. 

In fact, if the banks get too many foreclosures on their books...then they're finished.  That's right; they'd be out of business in a New York minute, and obviously that isn't in their best interest.

 It's so darn easy that you'd think it was illegal!  I'm telling you; this is the only way I know of to buy real estate at such low prices that you'll think you just took a time machine back to the 1970's!

I'm ready to spill the beans and tell you exactly how it works...

The best part is, it requires no phone skills...no negotiation skills...basically, if you can read from a 3x5 index card, you've got what it takes to create instant equity - cash in your hands anytime you want it!  Just wait till you experience this...talk about an adrenaline rush!

 

Step #5:  You're the boss.  If all goes well, it's time to sell and get paid!  But with my method, you're not hiding out because you just robbed someone of all their equity.  No way!  The homeowner will love you like a brother!  You're helping him...putting money in his pocket and yours.  Do this enough and you'll be the coolest cat in town!

But watch out...because everyone will swoon and flock to you in time...you'll be a celebrity overnight!  And finally get the respect and admiration you deserve!

 You bet!  In fact, it's a breeze compared to the other courses I know of. 

Ever tried opening a business before, besides real estate?  If not, you're lucky...because the process is full of stress and rarely pays off. You can consider yourself lucky if you make enough to cover your bills and overhead, and if you don't have to close your doors within the first two to three years.  But this is different; you'll probably laugh how simple it really is to invest in foreclosures.

I guess that's why this country's richest people are real estate investors.  The numbers don't lie, my friends!  Real estate has always been and always will be America's #1 freedom and wealth builder!

 Unfortunately, this kind of insiders-only information is rare...rare as the Hope diamond.  And those who do have this information usually guard it like snarling pit-bulls guarding their homes!  If you're lucky enough to find someone willing to show you this simple strategy for foreclosure investing, you can plan on paying at least $2,000 to $5,000 at a bare minimum.  Sure, the price is pretty steep...but if you want to play, you gotta pay.

What other option is there? I mean, 6 months from now you can be chasing dead-end deals for virtually no profit, like 99% of investors...or you could sitting pretty, turning bad deals into goldmines just by doing a few simple steps I’ll personally show you.  You'll be able to filter out those bad deals with the accuracy of a guided missile...it's a no-brainer choice!

True story...a friend of mine who happens to be a multi-millionaire actually paid (I think) around 900 dollars just for a book on foreclosure investing, with this exact same information!  So when I say this kind of knowledge is rare and expensive, I’m not just whistling Dixie! 

Think about it...if a multi-millionaire who's been in the real estate business for over 20 years didn’t know how this really works, how do you think the Average Joe can get his hands on this stuff? 

He'd have a better chance of winning the Lottery three times in a row...it just wouldn't ever happen.

 Here's what I mean by that...

You can't find this anywhere else…Every pro has his own bag of tricks...secrets so powerful they just can't be released to the general public...kind of like a magician.  There's also a code among people in the industry that is NOT broken when it comes to releasing juicy, top-notch information to the public...if you do that, you run risk of being labeled an outcast...run out of town...and banished from the Inner Circle forever!

But you know what?  That's exactly what I'm going to do!

My Foreclosure Files course shows you start to finish exactly what I have done to get foreclosures the fast and easy way...check it out here if you haven't already!