Pre-foreclosure/foreclosure leads in a Judicial Foreclosure State

[Gregory Green]

Hi everyone, I have a question regarding locating/purchasing data.

I live in Pennsylvania and when I research foreclosures and pre-foreclosures in PA I am unable to generate any leads. One site (either listsource or listability) advised that when searching in PA you have to search for properties that are up for auction. Well by that point, you've more than likely missed the window of opportunity to interact with a motivated seller. I'm sure it's not impossible but it's well beyond the 60-90-120 day range where you have a greater chance to purchase the house. Moreover, how motivated can a seller be when they know they have plenty of time (upwards of ten months) before they lose the property?

I read Steve Cook's article on judicial foreclosures: foreclosure-update-happier-days-on-the-way-for-judicial-states/ and in that article he indicates how long the foreclosure process is in judicial states and the impact it has on investors by reducing the number of houses available.

All of this brings me to my question, which has two parts:

1) is there a viable way to obtain a list of homes in the pre-foreclosure/foreclosure process in judicial states where no public notice of impending foreclosure is required?;

2) I noticed on RealtyTrac that they actually list homes in pre-foreclosure/foreclosure process, yet I've seen in some threads that RealtyTrac can be unreliable and out of date sometimes. Is RealtyTrac's information legit and if so, what price ranges has some people seen when using it (some quick criteria for the sake of the question: 3 bedroom sfh, 1000+ sq. ft; 50% or less LTV)?

I am seeking these properties for the purpose of wholesaling. I have cash buyers lined up but I need to locate the properties. I am now preparing my yellow letter campaign and I will more than likely use one of the marketing companies I've seen on the site (www.yellowletters.com). I have a list for absentee owners but I would really like one for foreclosures if possible.

If there are any details I've left out, please let me know, I'm happy to include them.

[Bill Gulley]

Originally posted by @Gregory Green:

@Bill Gulley thank you! That's a great little nugget. Do you think it's "worth it" to try and engage homeowners in the midst of the foreclosure process or perhaps just target the homes when they go to auction?

I'd think for someone new, that may be influenced by investor methods, like wholesaling, that they avoid pre-foreclosures where notice has been given.

If you're more advanced and skilled in presenting an offer and negotiating without making any reference or even the implication that your offer will provide some relief to their situation and make it clear that it's just a deal and you're not advising them in any manner and do so by showing you didn't target a pending foreclosure, you might go there.

The issue is that if the investor doesn't have cash or reliable access to cash, they need to stay away from owners who have received notice. At that point, no Sub-2 deal or any lease-option or any kind of seller financed transaction will not work if the process of foreclosure was begun. Okay, maybe one out of a hundred for those who like to disagree, but in reality, trying to get that one isn't worth the risk of a felony. It will take cash to payoff the loan.

Otherwise, yes, go to the auction. :)