Specialist · Tucson, AZ · Member since 2009 · 108 posts · 24 votes
I have been working with pre-foreclosures for a little while now and have come to the realization that my process (bandit signs, ads, knocking on doors etc) is very inefficient. As we all know, its a numbers game, few contacts we make will actually pan out and be profitable. And with pre-foreclosures, which are those? At least for me they are the homes which have 2 mortgages which make them profitable short sale candidates, homes with low payments which make them viable subject 2 candidates or homes with older loans which mean they have decent equity.
I have been looking into different ways to find these specific types of homes, mainly spending time at the courthouse etc.
Does anyone have an easy way to determine if a house has more than one mortgage? I know you can go through public records and look for liens but that can be pretty time consuming for the amount of houses you need to go through.
Any ideas on these cherry picking strategies or thoughts on how to make our preforeclosure searches more efficient?
In my area, they post the instrument # of when the people bought the home. This istrument number contains the date. If I see they bought the home in...like 2002 or later...I pass on it right away.
Also, if the mortgage itself that is in foreclosure originated after that date, I pass. it is either a first with not enough equity, or a 2nd. In either case...I pass.
Have you thought of purchasing a list of preforeclosures ? - There was a thread about this in the past week or 2. From that list then you could work your way.
Also you can try foreclosureradar, which should show if a house has 2 loans on it or not.
haha Steve you are like keeping me in line arent you. Ha, I created this thread at the same time as the other one, I meant for this one to be more focused on determining props that were good sub2s or older mortgages that had more equity.
haha, yes the shortsales question has been covered now, very well in the other post. Sorry
In my area, they post the instrument # of when the people bought the home. This istrument number contains the date. If I see they bought the home in...like 2002 or later...I pass on it right away.
Also, if the mortgage itself that is in foreclosure originated after that date, I pass. it is either a first with not enough equity, or a 2nd. In either case...I pass.
Sorry about the confusion. On the contrare....I LOVE homes with 2nd's. :cool:
They rock.
What I meant is that if it was the 2nd that was foreclosing and if that can be determined quickly...I usually pass pretty quickly. I usually don't go after the 2nds if they are foreclosing. I prefer to go after the ones where the 1st is foreclosing and there are juniors waiting to be wiped.
Now, if it is a 2nd that I have a relationship with...I might offer to buy the note off them, or short them if I have the owner on board.
In my area, they post the instrument # of when the people bought the home. This istrument number contains the date. If I see they bought the home in...like 2002 or later...I pass on it right away.
This is great advice for buying a property Sub2. In most parts of the country, homes bought after '02 don't have equity right now. Bad advice for a short sale but I don't think that is what Brandon was recommending here.