How to Find Foreclosures

Because of the subprime mess and all the publicity surrounding foreclosures, I get a ton of inquiries asking how buyers can go about finding foreclosures.

Some of the inquiries are about pre-foreclosures such as short sales, but I am quick to point out that many short sales are not the terrific deal some buyers assume. The reason is simple. Because a home is offered for sale at less than what the seller owes does not mean it's priced under market. For one thing, the seller's lender won't accept an offer for less than the mortgage if the home is not worth less than the mortgage.

This means if the lender accepts a short sale, it's because the home is worth about what the buyer offered. On the other hand, post foreclosures are often priced below market. That's because the lender couldn't sell it on the courthouse steps for the amount of the mortgage. Now the lender has paid foreclosure costs and it has the property back.

These lenders are motivated to sell that foreclosed home . . . read more about finding foreclosures.

More Articles by Elizabeth Weintraub, click below:

• How Foreclosures Work
  
• Downside to Buying Foreclosures
  
• Stripped Foreclosure Homes

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