Frequently asked questions | ForeclosureS.com

Frequently Asked Questions about Foreclosures and Foreclosure Investing

If you don't find your answer here, ask our foreclosure experts using the form to the left. To learn more, read Alexis' Blog and Monthly Foreclosure Investor Newsletter . Our Newsletter, written by Alexis and other Foreclosure Experts, shares news and techniques for new and experienced Foreclosure Investors. Sign up for a Alexis' Monthly Newsletter .

Getting Started

Q: What is a Preforeclosure?

A: Pre-Foreclosures (Notice of Default Lis Pendens or Complaint filed) Owners have missed at least one payment and are in default on their mortgage. This is also known as the first foreclosure notice. Based on the state that the house resides in the owners have a set amount of time (varies from 3 weeks to 12 months) to remedy their problem (which includes selling their home) before their house is scheduled for foreclosure public sale

Q: What is an Auction?

A: Foreclosure Auctions (Notice of Trustees Final Judgment or Sheriff Sale) Owners have been in default for quite some time and their home is now scheduled for public sale. This is also known as the second foreclosure notice. ( In some states they skip the pre-foreclosure notice and use one Auction notice to announce the default and future auction date all in one notice.) The foreclosing lender sets the auction opening bid at the unpaid balance, plus penalties and fees for their defaulted loan. The lender may opt to start bidding below their amount owed. The auction date and time can, and oftentimes will, be postponed by mutual consent.

Q: What is an REO?

A: R.E.O.s (Real estate owned) Real Estate Owned (REO) properties went to sale at foreclosure auctions but there were no outside bidders, so the defaulted winner is the foreclosing lender. This is the way that lenders take their collateral in exchange for their defaulted loan. The lender no longer has a bad loan to collect on - they now have a REO property that is a non-performing asset that they must sell. All junior loans and liens are wiped out. If the senior lender was the foreclosure party, they now own the property free and clear.

Q: Are your listings obtained through the Multiple Listings Services (MLS)?

A: We do not obtain our foreclosure property information from the Multiple Listing Service (MLS is the database of for-sale homes by agents). or from the REO lenders websites of homes for sale.

Q: How do I buy a Foreclosure?

A: With foreclosure numbers in the tens of thousands nearly everywhere across the country, many people who have never invested in real estate are wondering “is now the right time to find great deals?” The answer is yes as the indicators are strong for investors, banks are selling foreclosed properties at huge discounts and strapped homeowners with foreclosure looming are looking for ways out of their predicament, including selling to investors. Done right, buying a home pre-foreclosure directly from a homeowner creates a win-win situation. The homeowner gets needed cash, and the buyer a solid investment property. Whether you opt to buy a discounted REO property from a bank or lender, or an individual homeowner, it’s essential to pay attention to the details. Read more

Q: How much money do you need to get started?

A: None. Since the credit freeze began many buyers are unable to get conventional loans and sellers are forced to lowering their prices to rock bottom. The inventory of homes nationwide is over 9 months, buyers having the edge in most markets, and many are wondering when their market will turn around. That is, except for real estate investors prepared to take advantage of this once in a lifetime opportunity. Read more

Q: Where do your listings come from?

A: ForeclosureS.com gathers information from researching public records at the various county recorder offices nationwide.

Q: What kind of properties are listed on your site?

A: Our listings contain, Preforeclosures, Auctions and REO’s (lender owned properties), HUDS, VA, Fannie Mae, and more !

Q: Can I buy a foreclosured home to live in?

A: Yes. Buying foreclosure properties has always been a red-hot topic among real estate investors. But what if you are a homebuyer simply looking for a good deal on a house to live in? Is it worth your time and energy to pursue foreclosure properties? And how does it work? Read more

Q: Alexis, How does foreclosure investing work?

A: You can hear me put it into perspective at our next informative webinar !

Q: Are there deals in Government foreclosures?

A: With the growing number of government guaranteed loans going bad, our government is now the dominant owner of US property. And with stepped-up efforts by Obama and the Fed lessen the pain of foreclosures; it’s likely that our government will end up holding the bag on even more foreclosed homes. Read more

Investing Questions

Q: What is the best way to buy a foreclosure?

A: You have 3 options, pre-foreclosure, auction and REO (foreclosed) Read the best way to buy here

Q: How do you buy at courthouse steps?

A: You will need to register to bid with the Trustees/Attorney’s representative, but before you do Read more on auction buying.

Q: Can I buy a bank owned home without using my own cash or credit?

A: Yes read more on hard money lenders.

Q: Do I need a buyers agent to buy foreclosure homes?

A: Yes and No find out which is best for you, read more about when to use a buyers agent.

Q: How do I buy a government home at a discount?

A: Knowing what to expect and how to do the math read more here .

Q: How do I get started buying foreclosure properties?