Foreclosure Listing Guide – Chapter 1: Why Pre-Foreclosures Are Easy To List

Foreclosure Listing Guide – Chapter 1: Why Pre-Foreclosures Are Easy To List 2018-03-30T03:00:04+00:00
 

This guide is going to teach you how to list pre-foreclosures. First, how to get listings from homeowners facing a foreclosure auction. Those would be the best leads to focus on. Then, you’ll also learn how to get listings from people with a foreclosure filing. This means the process has just started.

These are not bank foreclosures, like REO’s. They have not yet been foreclosed on.

Foreclosures are fairly easy niche to get into. I started out working as an assistant to a real estate investor. That is where i first learned how the foreclosure process works, where to find leads, how to contact them. I even did some door knocking.

Now, as you know, investors need to make money. In order to do that, they have to buy a house for substantially less than it is worth. Many people were in foreclosure and needed to sell. But they did not want to sell at a huge discount to an investor.

I saw that these were good leads for a listing. There was an agent I worked with a bit, and I would send those leads to him to list.

It was kind of a win-win-win. The agent got a commission, buyers got a good deal, and the sellers were able to walk away with some money in their pocket.

I have an example here in Jacksonville. This home was worth about $190,000. It was a little rough and needed a bit of work. The sellers owed about $130,000, and the bank had just started the foreclosure process.

If they sold to an investor, they would get virtually nothing for their home.

I came in and listed the home for $190,000. It sold for $170,000. The sellers made about $30,000 and were able to start their lives in a rental.

In another example, this home was worth about $330,000. The sellers owed about $275,000. An investor would want it for cents on the dollar, so there wasn’t enough equity. I listed it, and sold it for $315,000, giving these owners some money in their pocket as well.

This is happening every day.

Even in a hot market, there are still a lot of foreclosure filings. Even when the economy is great, people can end up in a hole.

In Duval County, with about 900,000 people, there were 3,302 foreclosure filings last year. That number is still increasing little by little.

I had my assistant do an analysis on these 3,000 fillings. About 40% of the foreclosures are worth listing; they are above $150,000. That’s about 1,300 very motivated seller’s, and there probably isn’t an agent going after them.

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