Foreclosed Property VS. Pre-Foreclosure are 2 very different things..
Reading your question further, sounds like you're interested in PRE-FORECLOSURE properties.
First, always check your state laws & what the foreclosure process looks like. (Varies from state to state & the types of foreclosures)
Here are the next steps:
-FIND A LIST of Pre-Foreclosures (County Sites, paid lists, zillow, auction sites)
-MAKE SURE THERE'S EQUITY Compare he Min Bid to Zestimate. (What they owe TO What the property is worth) Keep in mind MOST properties are under water. You want to target properties you know will have some equity. Easiest way to do that is to look at the Minimum Bid then compare that to the Zestimate.
-CHECK TITLE for ALL liens & lien positions (If you're seeing 1st lien position foreclosing with a min bid of 70K Make sure that there aren't other liens or if there are.. make sure they don't put the property underwater. Since you are responsible for all liens when buying the property before auction) Sometimes the Seller will tell you of other liens, sometimes they won't even know, I personally always order a preliminary Title Report.. Add all of the liens up & divide Zestimate.. I don't go after anything higher than .70 cents which will eliminate more than half of the properties.
-FIND OWNER: This can be easily done via county sites. Then either knock, direct mail, call. One of the hardest parts is getting in contact with these people since they usually don't want to be contacted. You can also resort to skiptracing sites or PI's.
-CONTRACT: Structure Deal & Get under contract
-CLOSE BEFORE AUCTION date (Sometimes you can request a postponement.. don't count on it tho)
Probably gave you more info than you wanted, this has been my niche for a few years. Not easy. TIME IS OF THE ESSENCE. However definitely pays off :) Good luck. & Remember- WIN/WIN
