U.S. foreclosure is a process where a lender takes back the real estate of a nonpaying loan holder. The process often leaves lenders with property they do not want. This property is often low-priced since lenders are trying to sell it quickly instead of paying to manage it or maintain it.

Investors looking for a good deal should consider foreclosure properties. Many don't have any major problems since homeowners were recently living in them. Still, doing some research and investing in quality professionals to assist is necessary to turn a profit. When considering listings, keep the following in mind:

1. Choose house foreclosure listings that are current since properties remain on the market a short time in some areas.

2. Know the local foreclosed home listings by networking with trusted real estate agents to locate all properties available.

3. Realize that U.S. foreclosure numbers may not be accurate for local property.

Action Steps
The best contacts and resources to help you get it done

Learn about real estate foreclosures

Take the time to learn the process of foreclosure. Real estate of all types can be foreclosed upon, including commercial and residential. The process releases owners from all rights to the property, legally, but can take six or more months to complete. Once property has a listing for sale by the lender, the original property owners have legal no claim to it.

I recommend: Research the foreclosure process before looking for house foreclosures. DebtWorkout offers a full explanation of the foreclosure process from a homeowner's standpoint. This can be helpful for potential investors to know. Each state has specific laws regarding foreclosure. Use state-specific resources to gather more information prior to investing. ForeclosureRadar provides this state-by-state information.

Find U.S. foreclosure listings

U.S. real estate foreclosures are widely listed in several ways. They are sometimes listed on the Multiple Listing Service that real estate agents use. Third party listing services also provide information on these. Using a variety of sources can help investors find the best property from which to choose.

I recommend: Locate U.S. foreclosure property listings from trusted resources. RealtyTrac offers a comprehensive listing of all types of foreclosures available for purchase including pre-foreclosures and bank-owned foreclosures. MSN Real Estate tracks foreclosure properties for sale and market trends in the industry. Its convenient search feature makes it easy to find local properties.

Seek U.S. foreclosure properties from qualified real estate agents

U.S. bank foreclosure listings and U.S. government foreclosure listings are available through experienced real estate agents. Most bank-owned properties are listed with real estate agents to sell. To purchase government foreclosed properties through auction, investors must work with approved real estate agents. In either case, real estate agents are able to provide excellent resources to aid in the search for quality properties.

I recommend: Determine options in foreclosure properties by working with the right real estate agents. To learn more about choosing a real estate agent and to find qualified professionals serving the investor or commercial sector, visit the National Association of Realtors. One of the best resources for government foreclosures is the U.S. government itself. To view properties available, visit the website of the U.S. General Services Administration.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Monitor the U.S. foreclosure listing providers for authenticity. There is no reason to pay for such listings. They are readily available to investors, without charge, from licensed real estate agents or through online sources. The value of real estate agents is high, especially when learning U.S. foreclosure listing basics.

U.S. foreclosure listings can lead you to residential and commercial properties that are being sold below market value. Studies show that U.S. foreclosures sell for an average of 22 percent less than average home sales. Whether you’re seeking a property to call home or an investment property that you can turn around and sell for profit, you have several options for finding foreclosure property listings in the U.S.

Foreclosure properties in the U.S. are the result of homeowners or business owners missing their mortgage payments and defaulting on their loans. U.S. foreclosure properties may also be called U.S. distressed properties.

A U.S. foreclosure property may be sold at one of three stages in the foreclosure process:

1. Stage 1 — Pre-foreclosure: Homeowners who have missed at least one mortgage payment are considered to be in pre-foreclosure. Pre-foreclosure properties in the U.S. may be sold at 20-40 percent below market value.
2. Stage 2 — Foreclosure auction: U.S. foreclosures are sold at auction by the lenders to the highest bidders. Buying at auction can result in savings of 35-50 percent off market value.
3. Stage 3 — Real Estate Owned (REO): When the lending bank is the highest bidder at the auction or there are no bidders, properties become bank-owned foreclosures. In the U.S., buying property from the bank typically results in more modest savings.

Action Steps
The best contacts and resources to help you get it done

Find foreclosure property listings in the U.S.

Providers of foreclosure listings in the U.S. typically offer state-by-state listings so you can find foreclosures in your area or across the country. Note that most U.S. foreclosure listings can only be accessed by registering and paying a monthly fee.

I recommend: Providers of foreclosure listings in the U.S. include RealtyTrac, Foreclosure.com, RealtyStore.com and ForeclosureS.com. They offer some of the largest listings of foreclosures, with thousands of properties listed.

Find pre-foreclosure listings

Use pre-foreclosure listings to find homeowners who may be motivated to sell at below market prices to avoid foreclosure.

I recommend: FindMeDistressedHomes.com specializes in U.S. distressed properties and offers pre-foreclosure listings nationwide.

Find listings for U.S. foreclosures at auction

An auction for a U.S. foreclosure property is typically held at the county courthouse. Buyers must be present and usually must bring a deposit in the form of a cashier's check.

I recommend: At the Real Estate Disposition Corporation, you can check the auction calendar listings for upcoming sales on U.S. foreclosure properties. The federal government real estate auctions listed at GovernmentAuctions.org often include foreclosures. Express Auction Real Estate Services auctions off residential and business foreclosures in the U.S.

Find listings for government-owned and bank-owned foreclosures in the U.S.

If you're interested in profiting from government-owned or bank-owned foreclosures in the U.S., seek out listings that focus on this segment of the foreclosure industry.

I recommend: HUDForeclosed.com offers the largest inventory of government-owned and bank-owned foreclosures in the U.S. At All Foreclosure Information, you can search for properties owned by various banks nationwide.

Find listings for U.S. commercial foreclosure properties

Business foreclosures in the U.S. occur when businesses default on a commercial mortgage loan. In the U.S., commercial foreclosure properties can be agricultural, industrial or business properties.

I recommend: Search the business foreclosure listings at Foreclosure Listings. Other providers of commercial foreclosure listings in the U.S. include ForeclosureFreeSearch.com and ForeclosureDataBank.com.

Find free foreclosure listings

Few providers of foreclosure listings in Massachusetts offer free foreclosure lists, however, you can find free trials or very low-cost trials.

I recommend: ForeclosureFreeSearch.com offers a free seven-day trial. For a seven-day trial, you’ll pay $1 at HUDForeclosed.com, $1.95 at RealtyStore.com and $3.95 at ForeclosureDeals.

Take advantage of learning tools to help you navigate U.S. foreclosure listings

Many providers of U.S. foreclosure listings offer online tutorials, webinars and other educational resources to help you master the art of investing in foreclosures.

I recommend: Check out the learning center at RealtyTrac or the Foreclosure.com webinar series for educational sessions on buying foreclosure properties in Massachusetts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When considering providers of foreclosure listings in the U.S., look for those that offer neighborhood reports and sale comparisons.
• •  Some providers of foreclosure listings in the U.S. let you apply for loan and downpayment programs via their websites.
• •  U.S. commercial foreclosure properties offer some of the biggest savings off market value.

U.S. foreclosure may be a negative thing for the original homeowner, but, for the investor, it is an opportunity to take advantage of low-priced property. Making the most of U.S. foreclosure listings can help investors make a long-term profit through rental or even allow them to flip the properties for faster profits. It is important to take advantage of all services available to accomplish this.

House foreclosure listings are just tools to be used. Use them with the services of professionals and some research to make the most profit possible. Locate potential properties faster than other investors and learn more about the likely income from them when using these listings and services. When looking into foreclosure listings, consider the following:

1. Determine the most reputable sources for U.S. foreclosure listings, as accurate information is a necessity.

2. Learn about U.S. government foreclosure listings and bank-owned properties in foreclosure as each offers a potential payoff.

3. Find as much information as possible about U.S. foreclosure listing providers prior to using their services to ensure success.

Action Steps
The best contacts and resources to help you get it done

Locate U.S. bank foreclosure listings through real estate agents

Foreclosed home listings from commercial banks are often on the Multiple Listing Service (MLS). The best access to these is through a real estate agent. Locate local real estate agents working with local banks on foreclosures. Contact them directly as they often work with investors prior to placing properties on the MLS.

I recommend: Seek out U.S. foreclosure property listings from real estate agents. Network with local agents to find those working with commercial banks. Find a listing of available realtors from the National Association of Realtors. LoopNet is a great resource for commercial real estate agents with which to network.

Choose U.S. foreclosure auctions for government properties

Foreclosure properties are available through auctions from the U.S. government and federal and lower courts. These properties are not usually placed on the MLS. Rather, they are sold through local auctions. Unlike traditional auctions, foreclosure auctions by the government are conducted through real estate agents. Investors must work through their real estate agent to bid on properties at auction.

I recommend: Require that real estate agents be able to bid on auction government foreclosure property. To bid on U.S. real estate foreclosures by the government, an investor must be represented by an approved agent. The Offices of Citizen Services and Communications, a department of the U.S. government, offers resources for locating these auctions and properties. The U.S. Department of Housing and Urban Development outlines the methods of bidding on auctions and listings of foreclosed property online.

Monitor the local market on U.S. foreclosure properties

Foreclosure real estate is a local situation. While the national average of homes in foreclosure rises or falls, the local situation may be different. Investors should utilize tools to know the happenings within the local market prior to investing.

I recommend: Search for information about the local real estate market. House foreclosures may be available online through these sources. RealtyTrac is an excellent source of information on the local market trends. Search for properties and monitor local pricing trends. Yahoo! Real Estate also offers local foreclosure tracking information and tools for investors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When looking for real estate foreclosures, don't forget commercial property foreclosures. Many receive a listing in the same way as residential property yet do not receive as heavy consideration in the general media.