If you are an investor who has been busy perusing free foreclosure listings, you might want to think about getting training before you buy. There are several specialists that teach investors what deals to look out for and what to avoid.

A company that provides excellent training for foreclosure listings will teach you the basics about buying distressed properties. Some of the tips you will learn while training for foreclosure listings may include the following:

1. Buy the home in pre-foreclosure directly from the owner. This can be the most cost-effective time to buy the property but can also be tricky.

2. Buy the home at an auction from the lender. These homes are sold as-is so they can be a deal or you may end up spending thousands in repairs or cleaning up the title.

3. Buy REO properties once they have been placed back on the market. This is the option that costs the most, but also might be the safest option because it will allow you time to examine the property.

Action Steps
The best contacts and resources to help you get it done

Get training for foreclosure listings

advantages to training in buying foreclosures. While there is a lot of money to be made by purchasing foreclosed investment properties and selling them for market value, there are also a lot of ways to make bad choices and lose a bundle. A good training course could help you avoid making costly mistakes.

I recommend: There are several places that provide training for foreclosure listings. Check out the classes available at ForeclosureTrackers.com, Foreclosure University or Foreclosures.com.

Know the laws about foreclosure listing in your state

The process of buying foreclosures varies from state to state. For example, many states vary widely on the amount of time a home owner has to redeem the property. It is best to know the laws of the state you are in before you make a purchase.

I recommend: RealtyTrac has a state-by-state comparison to help you decipher the differences in the laws. Also, you can select your state at Foreclosure Laws to help you get a detailed explanation.

Search out business foreclosures for your first purchase

If you are interested in adding a commercial property to your list of rental investments, start your search with commercial foreclosure listings. While foreclosed homes tend to be abandoned after a foreclosure, a commercial foreclosure are often in better shape and require less fix-up after a purchase.

I recommend: Check out the business foreclosure listings at ForeclosureListings.com, or Capmark.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you want to buy foreclosure properties at an auction, consider asking an expert to let you watch him or her make the purchase. This can be a tricky process and you should try to get hands-on training before attempting yourself.
• •  Watch out for scam artists that call themselves providers of foreclosure listings. There are a lot of people trying to take advantage of the foreclosure trend so, whenever possible, check out the company's Better Business Bureau record.

At this moment, there are a number of good reasons to work foreclosures.

First, foreclosures are in abundance.

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

Third, finding and selling pre-foreclosures helps out a struggling human being.

Action Steps
The best contacts and resources to help you get it done

Foreclosures Are in Abundance

The leading online marketplace for foreclosures, RealtyTrac, says its foreclosure listings have grown by as much as thirty-nine percent in the last year. And according to RealtyTrac CEO James J. Saccacio, “Foreclosures are on track to go above 1.2 million in 2007, which would push the nation's annual foreclosure rate to more than one percent of U. S. households.”As you can see, the inventory of foreclosures is rising, which means a good opportunity for you.

I recommend: To view over 1 million properties–updated daily–including pre-foreclosure, bank foreclosures, for sale by owner (FSBO), foreclosed homes via auction, new homes and MLS listings visit http://www.realtytrac.com/.

Working Foreclosures Adds to Your Toolkit of Buyer Services

Brokers and agents should take a good look at the foreclosure marketplace for several reasons, not the least of which is to broaden the range of services they offer and enjoy increased sales.Consumers are fascinated with the concept of saving money on their home purchase. That's why they seek information about foreclosed properties.The perception is that they will save money. Although Linda Stern at Newsweek writes that houses are going for as little as 70 percent of their current market value, this isn't always true. Not all foreclosures are deals. Regardless, the same consumer has expressed an interest, need or desire to purchase a property, and whether they buy a foreclosed home or not, they still need to purchase a property. This creates several opportunities for the wise broker/agent.

I recommend: I might also recommend at this time that you go to www.realtychat.com. This is a web site where you can post your questions and others in the industry will respond. Plenty of people will respond to your foreclosure questions and comments.

Selling Pre-foreclosures Helps Out a Struggling Human Being

The seller who is on the brink of defaulting on his loan needs your help. Buying a pre-foreclosure—a home not yet in foreclosure—can be a worthwhile investment for your client. Either they use the property as their home or as an investment, helping a distressed homeowner who needs to sell can be a beneficial experience for both parties. Many people, in fact, make a full-time profession of purchasing pre-foreclosure homes and reselling them. In this way you, also help a seller preserve his credit. In a nutshell, representing foreclosures could be a boon for you. And a saving grace for the seller.

I recommend: To contact preforeclosure owners you must first locate them. There are several excellent ways to find preforeclosure owners such as in newspaper ads.

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

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It’s best to contact the preforeclosure owners by mail. You may expect to send 1,000 letters a year to preforeclosure owners. But if you close 10 deals a year that net $5,000 to $25,000 per deal, you will have created a very successful business for yourself.
• •  Don’t be discouraged if you don’t hear from anyone after making contact with owners by mail. Most preforeclosure owners are in a state of denial about losing their homes. For this reason, you should contact them on a regular basis.
• •  Partner with a lender when approaching FSBOs. The strategy is first to break-down the barrier of FSBO resistance. What’s the best way to do that? Don’t threaten their equity. Whenever an agent calls, the FSBO is immediately defending their equity. They see you as being out to get 6%-7%, which may represent a huge chunk of their total equity. But the lender doesn’t cost them anything. The lender is a service person who makes money without dipping into their hard-earned equity.

Foreclosure properties are a great option if you are considering buying an investment property or finding a new location for your business. There are several places you can find foreclosures, but use care to make sure that you are making the most of foreclosure listings.

With so many services available, it is easy to get lost in a sea of foreclosure information. By making the most of foreclosure listings, you can target the best potential properties for you and find the best price. Before you make your next purchase, make sure you:

1. Get free foreclosure lists e-mailed to you regularly so you have the information before anyone else.

2. Buy foreclosure properties before they go on the market so you can get the best price.

3. Use business foreclosures to help you buy your new commercial space.

Action Steps
The best contacts and resources to help you get it done

Use providers of foreclosure listings to send you regular updates

There is a lot of competition out there for a good foreclosure listing, so your best bet is to find out about it before anyone else. Use a company that will e-mail you listings that meet your specifications to help you keep focused, narrow down your search and get the information quickly.

I recommend: At EmailForeclosures.com you can have a customized list of free foreclosure listings in your area e-mailed on a regular basis. Though there is a fee at Default Research, you will get the information from this company before anyone else, as they get their lists directly from the courthouses.

Find distressed properties before they go on the market

These days, you don't even have to wait until a home or commercial foreclosure is listed before you can buy it. By finding properties that are in pre-foreclosure, you can talk to the property owner who is behind on payments. If you buy a property this way, chances are that you will save more money and you will be helping out an owner who needs to sell.

I recommend: At All-foreclosure.com you can get a list of pre-foreclosures in your area. Another option to find pre-foreclosure information includes Foreclosure Connections.com.

Use commercial foreclosure listings to help you find your next business space

Free foreclosure lists aren't just good for investment properties. If you are looking for the next home for your business, search commercial foreclosure properties for a deal.

I recommend: Check out Foreclosure Databank, Foreclosure Free Search or Foreclosure Deals for business foreclosure listings.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Making the most of foreclosure listings means that you have detailed, specific information before anyone else does. If your providers of foreclosure listings don't provide those services, look elsewhere.
• •  Foreclosure properties tend to be much more worn down than other types of properties. Make sure that you conduct a full inspection on the property before buying.

There are several reasons that you might have interest in purchasing a foreclosure house. There are the obvious personal reasons. But, as a business, foreclosure houses are a great investment. Even if the houses are in disrepair, you can still often obtain a profit when you place them back on the market. As you explore foreclosure houses as a possible investment, there are few terms you need to be aware of, including the different phases of foreclosures.

Action Steps
The best contacts and resources to help you get it done

Lis Pendens

Lis Pendens, or LIS, is the second part of the pre-foreclosure process. When a buyer defaults on mortgage payments, he first receives a Notice of Default (NOD) as a warning. The Lis Pendens follows as a notice of lawsuit filing.

I recommend: Visit Foreclosure for more information on Lis Pendens and how, as an investor, it can open a great opportunity for you to purchase property.

Short sale

A short sale is when a homebuyer, who missed a mortgage payment, makes an offer to purchase the house from the bank for less than the amount still owed on the mortgage. This is an effort to avoid foreclosure.

I recommend: Mortgage News Daily provides more information about a short sale.

NFS

NFS stands for notice of foreclosure sale. NTS, notice of trustee sale, is equivalent when it comes to foreclosure. Both mean that the house is under foreclosure and typically sold at auction.

I recommend: Access the Trulia blog for more information on NFS.

REO

REO stands for real-estate owned. Also known as bank-owned, this is the last stage in the foreclosure process. The lender takes possession of the property and then sells it to recover its loss.

I recommend: RealtyTrac has more information on various types of foreclosure. Scroll down for an explanation of REO.

HUD home

A HUD home is a foreclosure house sold by the U.S. Department of Housing and Urban Development because it became HUD property due to its FHA-insured mortgage.

I recommend: Find more information on HUD home foreclosures from the U.S. Department of Housing and Urban Development.

Market value

The market value of a house is the price a buyer would pay in a typical sale. In regard to foreclosures, it gives buyers a basis of comparison as to what you would pay for the property if purchasing under normal circumstances.

I recommend: Zillow uses the Home Value Zestimate to provide market values of houses.