Where to purchase foreclosures?

[Account Closed]

Hello BP!

Correct me if I am wrong, but the best place to find foreclosures before they end up on the MLS is at the courthouse. However, are there special courthouses that specialize in foreclosures or do courthouses that handle felony, misdemeanor, and other common charges also handle foreclosures? Would you ask the secretary inside to see records of recent foreclosures or is there more red tape involved?

Secondly, are there any special fees (aside from having to pay off any outstanding liens on the property) that would occur if you were to purchase a foreclosure?

Thanks in advance!

[Paul Hitchings]

If you network with some local investors, I suspect you'll find where local auctions are held. The trickiest part of the auction sales is that there is a big list of homes, strong competition from other investors, and you need to have all your due diligence completed before you bid. Depending on who is running the auction, they will require payment in cashier's checks, so you'll need a variety of denominations so you don't pay for a $150K auction property with two $100K cashier's checks, although often bidders overpay and are refunded later, or so I hear.

Most investors use online databases to follow up on local properties going to auction so they can do all their diligence before the auction. And just because a property is on the chopping block, doesn't mean it will even go to sale that day, there are a myriad of reasons a sale might be cancelled or postponed, but that's another story.

As far as liens, the only ones that will remain are typically superior liens, or liens recorded before the deed of trust that is being foreclosed on.  You can either work with a title company or the local recorder and accessor's office to research individual properties.

Regarding asking court employees about the location of trustee or foreclosure auction sales, you might find an answer. In my opinion, better to google "trustee sales Frankfort Illinois" or similar search terms. I suspect in less than an hour of online research and a few phone calls you'll find out where they are held.

A really easy way to find them is to pick up all your local newspapers, because the "Notice of Trustee Sale" will often be published in the local paper with an address and time. They might be mixed in with all the DBA and other county announcements, but I promise at least one of your local papers has them.

Lastly, buying at auction is not always a great plan for the beginning investor, though I'm sure some start out that way. I highly recommend working with local investors and even keeping track of companies/owners who buy auction properties and then following up with them later to ask how their entire experience was. Some will not want to share their experience, but you never know until you ask :)