Foreclosure Process

[Braden Hobbs]

Hey everyone. 

As a newbie here in Denver and trying to learn as much as I can before jumping into a deal, I'm curious as to what the options and next steps would be if I found a NED(NOD in other areas).

Let's say you find a NED that looks promising. From my understanding the first thing you should do is check the property records to see loan information on the property to check if it's the only loan etc. 

Say that all looks good what would be your next steps?

Thanks for the advice!

[Tom Mole]

First, allow me a moment to say welcome the BP and foreclosure investing.

I find that owners in foreclosure mostly come in one of two mental states. They usually start out in denial, figuring that their situation is temporary or in some way not real. As the auction looms and time has passed, every investor in the world will have hammered on them until they become jaded. You can reach them as they transition from denial to jaded. For this reason be prepared to make a lot of calls and face a high level of rejection. That's not to say don't bother, rather get your "GRRR" on and do it.

You're gonna hear I lot of "no's", so as @Ned Carey says, don't invest too much love investigating a property until you have some progress with the owner. Do try to connect with the owner early and often. It's usually better to talk to him before he signs a contract with a realtor, if that's possible. When you speak to him find out if he's underwater. It's significantly more complicated if the owner needs to short sell. Again, don't let that discourage you, instead get even more "GRRR" on and go for it.

There's a number of ways to invest in the foreclosure market. Buying preforeclosures is pretty straight forward way to get started. I hope this helps. Scream if you still have questions. Go find those default notices and market like a madman. Send letters, make phone calls and even better knock on some doors. Persistence and personal contact works best in this market.

Luck is for rabbits, so instead I wish you success.