WLCCI

Locating Foreclosure Opportunities

Foreclosure opportunities exist in three separate time frames: the period up to the foreclosure sale, the foreclosure sale itself, and finally, once the property has reached the status of R.E.O You have several ways to locate foreclosure opportunities during these three stages.

In some jurisdictions, the lender will post a notice on the property that it will be sold at a public auction. In some cases, too, the run-down condition of a property may indicate a foreclosure is in process. In either case, your course of action would be to approach the owner/borrower, not the lender.

Public Records. The owner’s name can be found in the public records of the county. You should attempt to make contact even if the house is vacant. In the case of an unoccupied property, sometimes the next door neighbors or other people in the area might know how to get in touch with the owner. You could knock on doors and ask people if they know the owner’s whereabouts. Explain that you are just trying to help the owner with the house.

Public Mail. Send a letter to the owner at the address of the house. Or, place a stamped envelope containing a letter from you in the mail box at the property address. Make sure it is stamped or you will be violating the law. If possible, try to find a place in the door or window where you could actually slip a letter inside. This way, the owner has a good chance of finding it if he or she returns to visit the property.

In the letter, explain that you understand the property is going to be sold at a public auction, and you would like to help the owner preserve credit and possibly retain ownership of the property. (You might work out an arrangement where you could buy the property by bringing the mortgage payments current and give the owner an option to buy the property back from you for a period of three or four years, if the owner is able to do so.

Telephone Directory. Consult you local telephone directory for the name of the person and call the information operator as well. If you come up with a dead-end using that approach, call some other people with the same last name that are listed in the directory. Chances are, they may be a relative or know the owner personally.