There are three ways to get a foreclosure listing:
Pre-Foreclosure [NOD, LIS] : Information is everything! Up to date accurate information is essential. You will need a source for knowing what properties are going to sale, for how much and when. Finding homes in pre-foreclosure is about timing and reaching the homeowners early on to help them. Many of these homeowners don't know who to turn to, they are mostly scared and/or worried. Wouldn't anyone be fretful in the same situation? When a homeowner is unable to pay one or two mortgage payments, it is almost prescient that a foreclosure ahead.
Auction [NTS, NFS] : When a borrower defaults on his/her mortgage payments, the original lender takes back the property and sells it at auction, often at a seriously discounted price.
Bank Owned [REO] : This is a very important use of your daily reports. 10-20% of all properties progressing to the trustee’s sales have no bidders show up. The instant that no bids are made at the sale, the foreclosing beneficiary (lender) becomes the owner. He/she now must keep current any loans senior to his/her loan if there are any. The property is now a REPO or R.E.O. (real estate owned).
Lenders are now getting these properties back regularly. It is very expensive for the lenders to be stuck with these properties! These costs to the lender would be enormous in the event that they chose to list the property with a broker and many months elapse during the clean up, the marketing, and the escrow period.
General Rule
When a property has a lot of equity, the general rule is to approach the owner, during default (stage 1), with an offer. It is in his interest to accept an offer of a few thousand dollars to get out before losing everything at the foreclosure sale. Our 14,000+ registered CSG Investors will make an offer quickly and usually within a few days after you submit the lead. If the home is purchased by the investor then you will get paid your referral finders fee.
Summary
First you must know which properties are in trouble and know exactly at what stage of the foreclosure process the property is in. Second, it is critical to know how much time the owner has left. Third, you should always know all the trust deeds (loans) that are against the property so that we can establish the lowest possible price to offer. These three elements are researched as completely as possible on every property giving you the most important information that any buyer can have.
Remember, if you can close around 3 deals a month with a net profit of about $5,000 per deal, that's over a $15,000 dollars in net profit per month.
For additional training and information you should login to your CSG backoffice. All you need to do is login at www.csgbackoffice.com and enter your username and password. (Username: namdecu | Password: travel07)
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