Quick and Dirty Guide to Foreclosures

At this moment, there are 4 good reasons to work foreclosures.

First, there is an abundance of foreclosures.

Second, working foreclosures adds to your toolkit of buyer services.

Third, working foreclosures at pre-foreclosures stage helps out a struggling human being—the seller who is on the brink of defaulting on his loan.

Fourth, there is very little competition.

Most agents view foreclosures as junk prospects, but when RealtyTrac released some numbers on Tuesday, June 12, 2007, relating to foreclosures, all I could see was leads aplenty.

As the Good Books says: the fields are white for harvest but there are so few laborers.

According to its data, RealtyTrac said, more than 176,000 people got foreclosure notices in May, an increase of 90 percent since the same month one year ago and the highest figure ever recorded in their monthly report.

90 percent. That’s scary. But also an excellent opportunity for you to help another human being save credit, equity or face. Rewarding in itself, of course…but you’ll make a few thousand for your time, too.

Now, the first step in working this niche is finding the best ways to locate foreclosures. Bandit signs, courthouses, banks, other real estate agents and loss mitigation specialists are all good sources.

One of the best places to find foreclosures, however, is by subscribing to an online foreclosure and pre-foreclosure service.

After you’ve located them, your next step is to contact the foreclosure.

In addition to pursuing foreclosures, you could also establish some ads that would bring the foreclosures to you. There may be a higher cost, but the quality will be supreme, because these people are looking for help and have sought you out. The following message, on a flier, in the Classified section or in a homes magazine would be sufficient and to the point:

Don’t lose your home to foreclosure.
Learn your options. Preserve your credit.
For a Free Recorded Message 24 Hours a Day
Call 1-800-xxx-xxxx
Enter Extension #XXXX

Let me know in the comments if I missed something that isn’t covered by one of these resources. Happy reading!

Click Here to Leave a Comment Below 7 comments
Elaine Carpenter

I’ve often had clients ask me how to find “pre”-foreclosures, and I don’t really know. Finding foreclosures is easy and the ways you mentioned do work, but how about pre-foreclosures? Any tips on where to get those before they become a lost cause for the sellers?




This has been eye-opening.I didn’t realize how many homes were in pre and foreclosure in my service areas.

This has opened a new niche for me.

Now where do I get advice on consulting for these types of situations.

I don’t want to mislead anyone.

Gary Elwood

Hi Elaine,

There are several excellent ways to find preforeclosure owners, such as in newspaper ads.

However, the best way to find them is to subscribe to an online preforeclosure service such as http://www.ipreforeclosures.com.

This has become the most effective way to locate preforeclosure owners. And the cool thing is, with a resource like this, you are guaranteed workable preforeclosure leads.

Gary Elwood


Great question. While the legal thing isn’t our cup of tea, I’d first recommend approaching your broker and ask him/her for local resources since the legal terms may differ per state. If he/she isn’t helpful, then contact a lawyer.


For a client looking for a pre-foreclosure, look for listings with the term: “Short Sale.” Those are headed into foreclosure and owners would rather have short sales because it doesn’t hurt their credit as much! To find foreclosures, drive around and if it looks abandoned get the address and then asked your title compnay to help search the owner for you. They will know whether it is now bank ownd or still owner owned. Then, follow through witht he bankl’s mitigation department.

Gary Elwood


Thanks for the excellent “Short Sale” tips. And the advice on driving around looking for abandoned homes is valuable too. I so appreciate you sharing them!


let’s talk next week when there is no pressure (on my part mostly) and discuss more options which we are not using….i know, our fault…..forgive me and let me move forward…..you folks are great, i’m at fault….scary thought!!!
talk to you after the 24th let’s say 26th or so based on your schedule also. I have clients coming night of 27th looking for cheap rental housing, also another client looking for fixer upper and need some insight…….happy 24th (pioneer day) Not sure if you know major celebration in Utah and most businesses close (i always work except christmas) Abbie


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