Value of PreForeclosure -> Auction -> REO data

[Jay Gray]

I've noticed sites like RealtyTrac, ForeclosureRadar, Foreclosure.com, etc. have a bunch of different data available...

Mostly this can be broken down into the following periods:

1* - Preforeclosure period
2* - Foreclosure period
*Where during these peroids they could also be considered "short sale" periods.
3 - Auction period
4 - Bank owned!

Maybe I'm wrong, but the best deals are going to be had once the property reaches the bank owned state, right?

Assuming you're after REO's how much real value is there in the other information?

How do you use the data personally?

Do you factor in other information, or just wait for it to hit the banks list (public or not) & then attack?

It seems like you would waste a lot of time if you were to start tracking houses much earlier than the failed auction period -- not to mention a lot could change condition wise within short periods of time.

It seems like only the bank lists have the real value?

[Justin S.]

Jay

The best value for you is going to be where there is the least competition. That means finding deals before they hit the MLS and finding pre foreclosures before everyone else finds them. You want zero competition when buying and lots of it when selling.

To find out what your market is doing, attend a local REIA and they probably have this broken down for you. In my market, REO's sell cheaper than shorts. But the shorts I buy are cheaper than REO's because I have no competition. Good luck.