How To Get The Best Foreclosure Deals

As you may know, the foreclosure market is hot right now. More and more home owners are failing to meet their loan obligations and, consequently, more properties are going into foreclosure. That means big opportunities for you, so let me reveal how to get the best foreclosure deals...


The first thing to realize is that you're not the only property investor on the lookout for a bargain. Just like you, other foreclosure investors are likely scouring the foreclosure listing sites, looking for a potential investment. But if you take the competition into account, and plan your strategy accordingly, you can get the deals you want.


For example, it's crucial that you act fast. Ideally, you want to be the first to locate a promising property. That's why you really want to try and snap up a property in pre-foreclosure - before it gets to that stage in the foreclosure process where it must be sold via public auction or trustee sale. Therefore, you should be monitoring the latest notices of default listed with the relevant county recorder(s).


If you're one of the first to identify a possible investment property, you have the chance to contact the home owner first. Having said that, don't expect to be the only one contacting them. They will likely receive a bunch of letters, phone calls and personal approaches from other potential buyers.


So how do you stand out? You try a different approach! This might be a creative mail piece and follow up phone call. Or an audio CD, or a bunch of flowers.


Whatever you do - be genuine, not gimmicky. Being genuine and credible is crucial for establishing trust. Which brings me to the next point...


Most home owners going through foreclosure are not only experiencing a lot of stress, but are probably unfamiliar with the foreclosure process. If you can be someone who helps them through this distressing time, you'll have an advantage over everyone else. To this end, be open and helpful, and readily provide them with your background information and credentials in order to build trust.


The next step is to value the home. If you're not fully familiar with the area and the kind of property you're looking at, you may wish to hire a professional appraiser or local real estate expert to assist you. Whether you do it yourself or hire an expert, understanding the market value of the property is crucial for getting the best possible deal.


Finally, to get the best deal you need to persuade the home owner that it's in their best interests to sell the property to you. Often that's true - they are more likely to get a better deal if they sell at pre-foreclosure than at a foreclosure auction. Having said that, it's a good idea to educate them on their options and explain how the deal you're presenting is likely to help them more than if they sell to someone else, or let the foreclosure proceedings continue.


Some of the things you might mention are that, by selling to you, the home owner will avoid foreclosure, save their credit history and get paid for their equity. Of course you need to make sure the deal works for you too... none of this is worth it unless you're confident you can make the return you want!



Connect with more information on foreclosures, www.foreclosurespotlight.com