How to Find Distressed Properties
Deal Acres
Last Update 10 months ago
Finding distressed properties is easy if you know where to look. Here are some tips for finding distressed properties that are both affordable and profitable to resell in the future.
Find Distressed Properties
If you are looking for a property that is in trouble, look for houses that have been completely ignored. Most of the time, a property owner stops taking care of their property because the bank has taken it back. If this turns out to be true, you can expect the owner to give up the property without much haggling or the bank having to hold an auction.
Bank Auctions
Most of the time, 30 days before a bank auction of distressed properties or other foreclosed property, the auction is advertised in a newspaper or on the bank’s official website. You must send the bank a sealed bid and a minimum reserve amount if you want to bid on the property. When the time for bidding is up, the bank holds an auction and sells the house to the highest bidder. A few sites act as “aggregation portals” and list all of the properties that different banks are putting up for auction.
Pre-foreclosure sale
Pre-foreclosure is like a grace period during which a lender warns a homeowner who is behind on their payments to do something to save their home. The length of the grace period varies from State to State, based on the laws of each State. This is a good time for the buyer to talk to the homeowner and make a fair offer to buy the house.
Hidden foreclosure sale
These are brand-new, high-end homes that went into foreclosure because no one advertised them. These are not likely to be listed in public places like newspapers or websites. Most real estate agents who are familiar with foreclosure sales know about these top listings. If a real estate agent takes you to a brand-new home that was finished a few years ago but has never been lived in, you may have just found a hidden foreclosure.
Disclaimer: The opinions shown above are mainly for informational reasons and are based on market research. Deal Acres is not responsible for any actions made as a result of relying on the provided material and makes no representations as to its accuracy, completeness, or reliability.