How To Find Pre-Foreclosure Notice of Defaults?

Question

Hi everyone, I'm a new investor who has spent quite a lot of time reading and looking into the process. I'm looking to get my first deal but won't be able to qualify for a loan since I'm an intern.

My situation has pushed me towards buying property "sub2" since I can use the capital I have to "help people with problems" and acquire property with less money and no loan.

My biggest issue is how do I find these properties? I have looked in my local county's clerk office and public records. The only documents I find are lots of "Debt Claims" with very little details. The documents have absolutely no further information, I've called local mortgage companies and nobody seems to know.

How do I find Notice of Defaults in my local county?

Account Closed · Answer

Here is the difference: The article you point to is talking about mortgages. Mortgages are usually used on the east coast. A mortgage requires a lawsuit in order to foreclose. The lawsuit is filed in the county that the property is situated in. It goes through the legal process to a court hearing. The judge then determines if the conditions were met for a foreclosure.

On the west coast and in TX, Deeds of Trust are most common. A Deed of Trust gives the lender permission to sell the property if you default, without a court hearing. There is no need to go to court to get a judge's approval. The process in most Deed of Trust states is to issue a Notice of Default., which is not recorded, and which gets sent to the borrower via certified mail and another copy is taped to the door of the property. It gives notice and allows 30 days (or more) to "cure" the default. Then, if the allotted time passes without the loan being "cured", a Foreclosure Notice is recorded, mailed and posted indicating a date in the future that a sale will take place if the loan isn't paid off. The borrower still owns the property at this stage and can sell. If the loan isn't paid off in the allotted time, an Auction occurs.

There are a lot more details of course, and it is very regulated, and it varies by state. Generally, if you are chasing foreclosures on the west coast, you are looking for a Foreclosure filing on a Deed of Trust. The NOD is not filed.

Texas has it's own way of doing things. I have property in Texas. And the counties take privacy more seriously than some other places. The county websites I used to access in Texas no longer allow me to see information I used to see.

What you want to do is contact a local title company and ask their marketing department if they provide a list of properties that have received a Notice of Default. If they charge anything it won't be more than a couple of hundred $$$.

Account Closed · Answer

Foreclosures are done at the county level. Each county has their own process determined by state law. Since you don't mention the state and county, it's impossible to tell specifics, but generally: Notice of Defaults aren't recorded. They are a private document between lender & borrower. If the demand in the NOD is not met, the lender has the option to start a foreclosure. Foreclosures may show up as recorded documents. Foreclosures are mostly on hold at this point because of a foreclosure moratorium (as of July 2021). At some point, it is likely the moratorium will be dropped and then you start seeing foreclosures again. Some states have laws against targeting foreclosures.

Jay Hinrichs · Answer

when I did pre foreclosure rescue in Oregon/ washington before the new laws came in that basically made it illegal . Some of the folks I bought these from would save all the mail they got and your exactly right  100s if not multiple hundreds of letters and post cards .. with all of them basically saying the same thing.. IE  I am here to help you I too went through tough times but now I can buy your house . We found anything other than knocking on the door was simply not productive or cost effective  But door knocking worked. I had 3 teams of 2 and we knocked every foreclosures that was within 10 days of going to sale.. you buy them with 2 to 5 days before the sale and sometimes day before its a big boy play  No title insurance  .. Average investor would be taking too much risk

Greg H. · Answer

@Jay Hinrichs

No public notice.  Actually no proof of delivery of the Notice of Intent to Accelerate is required although it is standard practice to send via certified and regular mail.  Texas can have a very small window to pursue these as the time of public knowledge(Posting the Foreclosure) can be as little as 21 days although it is usually more.  Once posted, the owner will be inundated with letters and often phone calls.  Of course in most major cities in Texas buying these before and during foreclosure is dominated by a few big $$$ players

Jay Hinrichs · Answer

are they required to publish them in the local paper .. they are on the west coast.. also NOD is recorded and published out this way and or as stated just the notice of sale but that is usually 5 months till the sale date..  it is absolutely illegal to approach those in foreclosures on the west coast without very specific set of circumstances  being met which  all hat no cattle investor will not meet.

Zachary Handshoe · Answer

Hi Mike, this is a very thorough and helpful answer. I appreciate your response and have learned a lot. Best wishes!

Bruce Lynn · Answer

You probably have to buy a list.  Probably the list you want to buy is the Appt of Sub Trustee.  I'll say that is probably the first step you will see publicly.  Probably 30-40$ month per county.

I don't think these are probably good sub2 properties to go after though.  If they're in default you would need to bring them current and often pretty quickly.  Sometimes people get posted month after month and it takes years, but also once they get posted it could be gone in 40 days.

Sub2 houses are probably a better play when the market in in distress and people that are current can't sell.  Then you go in and take it over sub2 the current financing.

I personally think you still need some cash to do this....as I guess you are hoping to rent them out.  The problem becomes, what happens when there is vacancy or repairs needed.  You will need to pay that out of pocket.   You don't want to be that guy that takes over payments, and then doesn't make them, and ruins the 1st guys credit.   Keep a great reputation and you will go far.   Word gets around quick when you start causing trouble for people.  Everything runs smoothly until it doesn't.

Greg H. · Answer

The Notice of Default(Intent to Accelerate) is not a public document in Texas therefore you will not find it.  The first public notice of a foreclosure in Texas is the Notice of Sale(Foreclosure Posting) that will be posted inside the courthouse usually near the County Clerk's office and recorded in their office.  This notice could be as little as 21 days prior to the foreclosure which only occurs on the first Tuesday of the month

Zachary Handshoe · Answer

Hi Mike, thanks for the reply. I'm looking at Williamson and Brazos county in Texas. I was reading about finding the notices here and read they were public documents. Wouldn't it make sense for the document to be public since the lender needs a public record of the document in case of a foreclosure? Even here, they say it is supposed to be a public document.

How To Find Pre-Foreclosure Notice of Defaults?

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