Buying Pre-Foreclosures (Non Judicial) Foreclosures To Do Fix & Flips or Rentals

[Account Closed]

Pre-Foreclosures / Foreclosures fit into several groups and are done under each State's laws. It varies by State. 

Primarily there are Judicial & Non Judicial foreclosures. Out west and midwest are typically Non Judicial, that means they don't have to go to court to foreclose. East coast is typically Judicial, it involves the lender suing and going to curt to get the right to foreclose.

I like to say that Pre-Foreclosures are before the "Notice of Trustee" / "Notice of Sale" is recorded and 

Foreclosures are after a "Notice of Trustee" sale has been recorded and a sale date is set. 

"Recorded" means that paperwork has been filed and accepted at the County recorder's office. There will be several dates you want to track depending on the state you are buying these in.

These all involve different approaches and techniques to purchase the property. More on that later.

[Jay Hinrichs]

In my mind until they are lost they are all pre foreclosure..

when I chased these in earnest before the very strict  laws were put into place to make this activity very dicy we bought all of ours within 24 hours to 5 days of the actual sale at the steps.

that's were you got the good deals.. if your mailing or contacting them with just the notice of default your going to not do very well at all.. they are not properly motivated at that point and you will waste a ton of time and money chasing those deals

Along with most of these will have very little equity if any.. And again those are waste of time you dont want to buy these subto or any other way if there is not equity .. at least that was how we did it we want to step into the deal day one with equity so we had exits that did not include cutting a check if we needed to exit.

Now to be fair not many could do what we did.. Which was our own title search we never got title insurance we prepped our own deeds and got them signed and we recorded them ourselves this was how you got the smokin deals on subto and we beat all the other folks out because well frankly they did not know how to do it and did not have the risk capital or risk tolerance we did .. And having the cash ready to courier to the Trustee the day before the actual courthouse sale.. Talking the seller into actually signing .. giving them money to sign. etc etc.. this was/is a very intense way to try to acquire property at least the ones we did were we actually made money the day we closed.  We were just not looking to buy RE because the rate was lower than current market or the leverage was a little better that's a fools errand .