Financial Telegraph

Step 1. Find the Best Online Pre Foreclosure List

You need an accurate source to quickly find homeowners in default.

It sounds obvious but so many lists are incomplete or have incorrect information. Many online sources have properties that are in REO or foreclosure status but few have any “pre foreclosure listings”.

This is the first stage where the homeowner has missed one or more payments and the lender has filed a “Notice of Default”.

Getting your hands on this list is SO critical to your ability to make money in foreclosures.

Step 2. Weed Leads for 40% Equity

Once you have access to your pre foreclosure list, you MUST find homeowners with at least 40% (hopefully more) equity.

Example; 200,000 market value – $120,000 (loan balance) = $80,000 (equity)

80,000 / 200,000= 40% equity

Why 40%

Because as an investor, you will assume repair and holding costs, plus you’ll want to offer the distressed owner some sort of exit cash. That 40 % will absorb repair, holding costs cash to the seller at closing, plus ensure a profit when you sell the property.

Make sure the online source has the properties market value and the loan payoff.

Step 3. Check if the Listing Been Dismissed

Make sure your list includes the attorney that is handling the homeowners case. Many times the owner can work out a loan modification with the lender while the property appears on a pre foreclosure list. One phone call can save you valuable time! You don’t want to pursue homeowners that have solved their problem.

So weed your leads for 40% equity and make sure that the homeowner is still in distress i.e. no loan modification has been worked out – then make a sincere effort to contact these homeowners.

You’ll be amazed at the amount of homeowners in default leads 40% or more equity, and these people need your help.

Online sourcing of leads first critical step to making great profits in preforeclosures, without good leads you will get discouraged and probably quit. So get to it! There are so many homeowners out there in default now the time to start couldn’t be better.

Gathering 20-50 solid leads per week using this method is critical to CLOSING DEALS.

As I mentioned earlier I have found only one source that accurately lists pre foreclosures in detail, I have included the link below.

Find Pre foreclosure properties FAST – Visit: pre foreclosure list

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Filed under: Foreclosure