how to buy foreclosures

Locating and contacting a defaulting homeowner who is facing foreclosure can be a difficult task. Between other real estate investors contacting the homeowner and the homeowners unwillingness to open and respond to mail, can make it very difficult. Persistence is key.

There are basically three ways to contact the homeowner in foreclsoure.
1. By phone
2. By mail
3. In person

If you choose to write the homeowner, be prepared to send several mailings and to do something creative to get them to open your mail.

Preforeclosure is the best time to buy a foreclosure so make sure you get in touch with the owner of the house that is being foreclosed.

Once you know the default amount the homeowner owes on the property being foreclosed, you have estimate the foreclosed property's fair market value. To figure the fair market value on the real estate, take the default amount owed by the homeowner and subtract it from the estimated fair market value of the real estate to determine how much equity is in the foreclosed property. This figure also gives you a good idea of profit potential. If there is a small difference in the amount of debt owed by the homeowner and the fair market value, it's probably best to keep looking. If the equity is sizeable, there may be enough room for a large profit on the foreclosure.