Pre-Foreclosure leads can provide agents and investors with opportunities before the property goes to auction. Depending on your state the foreclosure process can be judicial or non-judicial. As a result there are several different methods of sourcing pre-foreclosure leads.
Please understand we're not lawyers here and aren't providing any legal advice regarding foreclosures or anything else on this website for that matter.
Before you get started you will need to create a spreadsheet to record your pre-foreclosure searches on. On your spreadsheet create columns for the following:
There are several filings you can source to locate pre-foreclosure leads. The documents you will need to look at depend on your state and whether it is a judicial or non-judicial foreclosure.
Let's take a look at the various documents you should look for:
A lis pendens filing basically means that there is a pending legal action to come. This filing is used in some states as a formal notice that starts the pre-foreclosure process. These filings can sometimes be found at county recorder offices. If not than you should check with your local court.
Another indication of a looming foreclosure is a substitute of trustee filing. These may or may not be available in your neck of the woods. In this scenario the lender has appointed substitute trustee to carry out the foreclosure proceedings. Often the substitute trustee is an attorney that specializes in the foreclosure process. This filing is one of the first indicators you can use to locate pending foreclosures. These filings are also generally filed at the county recorders office. Again, if not check with your local court.
If you are in a judicial foreclosure state you may also be able to locate pre-foreclosure leads within the court system. You will want to source only the freshest cases to allow yourself extra time to work with the homeowner before the case is finalized and the foreclosure takes place.
The notice of default is also one of the first indicators of a looming foreclosure. It is basically a public notice indicating that the homeowner has fallen behind in mortgage payments. These filings can be found in the county recorders office or in the local court depending on your location.