When a homeowner is behind on payments, the bank goes through a process called foreclosure to repose the house. In order to even start foreclosure the homeowner must be behind for at least 3 months. Once that is done the bank hires an attorney and files for what is called a notice of default or lis pendens to let the world know the bank is foreclosing on the property.
Being that this is public information, you can go to the court house and look for all the lis pendens filed in town or look for a company that gathers this for you and buy the list from them. In essence, anyone and everyone that has a lis penden filed on their property is going through foreclosure and because of this they are potentially motivated sellers.
Though getting the lis penden list and marketing to them to find motivated sellers is great, i also found that properties about to hit the sheriff sale is even better. Point here is, just because you are in foreclosure doesn’t mean you want to sell. As for properties that are about to hit the sheriff sale, this is now the end of the rope. You can sell and make a profit or you can lose out.
This being so i also target people that have their house listed on the sheriff sales. To get the sheriff sale list it is free and even easier. You simply go on google and type in your county sheriff sale and a sheriff sale website should come up with a list of all the properties going to sheriff sale.
From there identify properties going to sell about 1 or 2 month from today that way you have plenty of time to do marketing to them, try to cut a deal and move the property. Simply understand that the judgement amounts can be at times over the fair market value of the property. This being so you would have to do a short sale to make equity, and yes you can do a short sale within a few weeks. Its just no one knows that because they all are doing it wrong. For more information on how to invest in sheriff sales and how to do short sales fast get my 101 video on pre-foreclosure investing
To your continued success,