Guide to Apartment Foreclosure

Save big by using an apartment foreclosure directory to find your next investment property
By Maria St. Louis-Sanchez

If you are a real estate investor interested in adding apartments to your investment portfolio, you should check out an apartment foreclosure list. By buying an apartment foreclosure, you will be paying a lot less for the investment property, thus making your business more profitable.

While it can be time-consuming to find apartment foreclosure information, it may be well worth the effort. Foreclosed homes across the nation sell, on average, for about 22% less than the rest of the market. There are three stages of apartment foreclosure to consider:

1. Properties can be purchased during the pre-foreclosure period granted by the state.

2. Find an apartment foreclosure provider at an auction at the end of the pre-foreclosure period.

3. If the property is not sold at auction, or if the bank is the highest bidder, it will be put back on the market.

Action Steps

The best contacts and resources to help you get it done

Find apartment foreclosure information in your state The process of purchasing an apartment foreclosure differs from that of standard investments. Foreclosure laws also vary widely from state to state; it's best to know as much apartment foreclosure information as possible before making a purchase. Investors will also benefit from becoming familiar with laws in different states in which you may be interested in building your portfolio of properties.

I recommend: Foreclosure.com lists the basic steps to apartment foreclosure so investors can understand the process. RealtyTrac compares and contrasts foreclosure laws around the nation to provide an understanding of how widely the laws vary.

Find apartment foreclosure properties before they hit the market Hire or consult with an apartment foreclosure provider to seek out the foreclosed apartments before anyone else. Developing a relationship with a apartment foreclosure provider will enable you to get insider information and advice that may not be generally available.

I recommend: FindMeDistressedHomes.com and Preforeclosure.com are two resources that specialize in helping investors locate properties in pre-foreclosure. In your search, look for multi-family dwellings, another term for apartments.

Use an apartment foreclosure directory to find bank-owned apartments An apartment foreclosure list will detail seized inventory under bank possession. While investors may have to negotiate more and compete with contending parties in the market, the savings should still prove better than a new purchase. An apartment foreclosure directory also enables investors to compare properties in areas of interest to develop a personal list of potential purchases.

I recommend: Foreclosurelistings.com and ForeclosureWarehouse.com list foreclosures of multi-family dwellings that can be easily converted into apartments. Sign up for the weekly HUD newsletter that lists the new HUD multifamily foreclosures.

Tips & Tactics

Helpful advice for making the most of this Guide

An apartment foreclosure property may have extensive damage. Whenever possible, have a housing inspector check out the property before purchasing the building to evaluate the cost of the repairs.
When you search for multifamily dwelling foreclosures, remember that this includes a large range of properties. Along with an apartment foreclosure list, you may also see places like nursing homes or townhomes.