Many real estate investors and agents see pre-foreclosure as a great opportunity to close deals. Homeowners going through pre-foreclosure are usually desperate to sell to avoid a short sale; hence, they’ll grab below-market offers or work with the first agent who contacts them.
To find pre-foreclosure leads, real estate agents and investors can check out LeadVine, visit an online directory and pre-forclosure listings in the MLS, connect to real estate attorneys, access public records, read local newspapers, and get referrals from your inner circle or from the community.
To know which of these strategies will work best for you, read the rest of this blog!
When a property is in the pre-foreclosure process, it means the homeowner has received a notice of default. The homeowner still has a chance to settle the mortgage payments or sell the property to avoid foreclosure and short sales.
Pre-foreclosure leads are sought after by many real estate agents and investors because property owners often want a fast sale to avoid a short sale. They prefer below-market offers instead of letting the lending institution foreclose their home leaving them with nothing.
There are 8 common lead sources to find pre-foreclosure listings if you are an agent or into real estate investing! You may check them out below.
LeadVine offers superior marketing lists for real estate investors, wholesalers, flippers, landlords, and real estate agents. The data they produce can help you identify the most motivated leads on pre-foreclosures in your area.
Moreover, they also offer data on widow, pre-probate, pre-inherited, divorce, and tax-delinquent leads.
The main goal of LeadVine is to reduce the marketing costs of real estate professionals through their niche filtering features that can get more conversations going.
Their leads on pre-foreclosures are all motivated so you get more deals and less competition. Also, you can get leads per county which can save you time in calling a huge number of prospects.
LeadVine provides its clients with actionable insights into their local market. They also give them tools and resources to convert these leads into clients.
Checking out online directories is also a great way to find pre-foreclosure leads with phone number and even expired listing leads.
These directories not only show where pre-foreclosed properties are located but also describe them in detail. Pictures are also included in most cases.
Online directories are perfect for real estate investors who are starting out because they can be accessed without a real estate license. This doesn’t require any leg work to get accurate contact information on a lead because it can be accessed online.
Some of the most popular online directories are Realtor.com, Trulia, Zillow, and Homes.com. These directories come with filtering capabilities so you can sort through the listings easily.
One thing to note about online directories is that they sometimes have out-of-date or inaccurate data. You might want to double-check with other directories if you found pre-foreclosure leads.
The Multiple Listing Service or MLS is the most logical source of pre foreclosures. This is a local database of all the properties that are on sale which can only be accessed by licensed real estate agents.
The data on the MLS is more accurate than those from online directories so you are sure to find pre-foreclosures here.
However, as mentioned earlier, it can only be accessed by licensed real estate brokers and real estate agents due to security issues and operation costs.
If you are a real estate investor who wants to pull leads from the MLS, it can be hard for you to get access, unless you partner with a local real estate agent or broker.
Homeowners whose properties are currently in pre-foreclosure stage or process are typically working with a real estate attorney to avoid a short sale. Thus, developing a great relationship with real estate attorneys is a step to getting the best pre-foreclosure leads!
To have more conversations with real estate attorneys and get leads on pre foreclosures, network with them during real estate events. You may also contact them on Facebook and other social networking sites. They may know of pre-foreclosure leads that other investors or real estate agents aren’t aware of.
Note that many of these real estate attorneys charge a fee for their referrals. But if you got on their good side, they’ll be your go-to investor or agent if their client wants to sell their home.
Once you got a lead from a real estate attorney, you should also do your due diligence to research that homeowner.
Your county recorder's office allows purchasing of public records on preforeclosure listings. When you get access to these records, identify those with a Lis Pendens, Notice of Default, and Notice of Sale. All of these public notices are publicly recorded after they are sent to the homeowner.
Some other information you’ll find on public records is the name of homeowners, property address, phone numbers, bank foreclosing on the property, if its going through short sale, and mortgage payments owed.
Note that pictures aren’t typically included in public records and there’s also no comprehensive description of the property. If the property has liens, this won’t be uncovered by just looking at the public records.
Moreover, public records offer a super long pre-foreclosure list that it is sometimes more difficult to sort through them to find pre-foreclosure homes.
If you are a real estate investor, cash buyer, flipper, or wholesaler who wants to invest in pre-foreclosure homes, you may want to team up with a real estate agent to get access to the local Multiple Listing Service.
These real estate agents will comb through the MLS to find preforeclosure listings for a price.
Some real estate agents also act as the middlemen between pre-foreclosure homeowners and real estate investors. They’ll set an appointment with the property owner who is undergoing the pre-foreclosure process and also do negotiations so they can pay what they owe in the mortgage.
These real estate agents can also get you comprehensive photos of the property, the square footage of the home, how much was the market value (price) of the property when it was last sold by the owner, and its annual property taxes.
Of course, real estate agents would only do the abovementioned tasks if you pay them right. Invest in these agents and you'll see a great return.
Once a property undergoes foreclosure, the homeowner will receive a Lis Pendens among other several notices sent by the lender. The Lis Pendens (with the same information) is also published in the legal section of newspapers, both printed and online editions.
If you want to learn about homes with litigation pending, you must check out the legal section of the local newspaper daily. The exact address of the pre-foreclosure lead is often identified in the Lis Pendens so use it to drive to the neighborhood and possibly talk to the owner of the property in pre-foreclosure.
Alternatively, you can contact the homeowner through email, direct mail, or call. Chances are, no one has contacted them yet with regards to buying their home because the Lis Pendens is only recently published.
If you have a lot of connections in the real estate industry, it would be easier for you to build your reputation and find lead sources no matter if it is pre-foreclosure or not. Referrals are still the number one way how homeowners find agents and investors.
You can begin your search for properties in the pre-foreclosure process by asking your family members, friends, and ex-colleagues. You may also want to leverage social media.
Spread the word in your inner circle that you are on the hunt for pre-foreclosure homes and what you want to do with them. Eventually, word will get out and you’ll be recommended by these people.
If this doesn’t work, develop a relationship with your community members so that whenever a house goes into pre-foreclosure, they could give you the names of its homeowners.
Pre-foreclosure leads are motivated sellers. It’s no wonder many real estate agents and investors are after them.
One of the best ways to find pre-foreclosure leads is to buy them directly from LeadVine. This platform offers high-quality pre-foreclosure leads as well as probate, tax delinquent, and divorce leads.
A great alternative to LeadVine is Property Leads. Although not all of our leads are going through pre-foreclosure, they are all highly motivated and we captured them through SEO!
If you want to get leads from us, fill out our form below!
30 N Gould St Ste N
Sheridan, WY 82801
(207) 309-3949
sales@propertyleads.com
