How to Find Houses in Preforeclosure

Preforeclosure describes the initial phase of a legal process that can eventually lead to a property being repossessed from a borrower who has failed to meet their mortgage obligations. This stage begins when a lender formally notifies a homeowner of their delinquency, signaling the potential for future repossession if the outstanding debts are not resolved. Individuals often seek out these properties due to the potential for acquiring real estate at a reduced price, as homeowners in this situation may be motivated to sell to avoid foreclosure.

Understanding Public Filings

The foundation for identifying properties in preforeclosure rests on understanding specific public legal documents. The most common of these is the Notice of Default (NOD), which a lender files when a borrower has missed a certain number of mortgage payments, typically three to six consecutive payments, or around 90 to 180 days past due. This formal public notice serves as the first step in the foreclosure process, informing the borrower that the lender intends to take action due to the arrears. The NOD includes details such as the borrower’s and lender’s names and addresses, a legal description of the property, the nature of the default, and the actions required to bring the account current.

Another relevant public filing is a Lis Pendens, which is a Latin term meaning “suit pending.” This document serves as an official public notice that a lawsuit involving a claim on a property has been filed. While a Lis Pendens does not prevent the property owner from selling the property, it does notify potential buyers that the property’s ownership or title is under dispute, creating a “cloud on title” that complicates transactions. Both the Notice of Default and Lis Pendens are key indicators of a property entering the preforeclosure stage.

These public records are generally accessible at the local county level. Individuals can typically visit the county recorder’s office or county clerk’s office in person to review these documents. Many county governments also provide official websites where these records, particularly Notices of Default and Lis Pendens filings, are digitized and searchable, often free of charge. Some counties may charge a fee for access to more detailed information or for copies of documents. These public sources are where the official status of a property’s preforeclosure process is first recorded, providing valuable data for anyone seeking these opportunities.

Online Search Methods

Once an understanding of the underlying public records is established, online platforms offer efficient ways to search for preforeclosure properties. Various subscription-based services specialize in compiling and providing access to distressed property listings, including those in preforeclosure. Platforms like Foreclosure.com and RealtyTrac gather information from public records and present it in a user-friendly format, often updating their databases frequently to provide the most current data. These services typically charge a monthly fee, ranging from approximately $40 to $50, for detailed access to listings, property information, and sometimes even owner contact details.

Beyond dedicated subscription services, many general real estate listing websites include options to filter for preforeclosure properties. Popular sites such as Zillow and Realtor.com allow users to create free accounts and apply filters to display pre-foreclosure homes in specific geographic areas. While these platforms may not specialize exclusively in distressed properties, they can still provide a starting point for identifying potential opportunities. However, the depth of information or the timeliness of updates on these broader sites may vary compared to specialized services.

Some free specialized databases, such as PropWire, offer unlimited searches and downloads of pre-foreclosure and auction property data, allowing users to filter by criteria like city, county, zip code, or the date the property entered pre-foreclosure. Access to the Multiple Listing Service (MLS), which often contains pre-foreclosure listings, is generally restricted to licensed real estate agents. However, by building relationships with local agents, individuals might gain indirect access to this valuable data.

Local and Direct Discovery Approaches

Beyond online databases, local and direct methods offer alternative avenues for discovering preforeclosure properties. One common strategy is “driving for dollars,” which involves physically driving through neighborhoods to identify distressed properties that exhibit visible signs of neglect. These signs can include overgrown lawns, boarded-up windows, significant exterior disrepair, or notices posted on the property. Once a potential property is identified, the next step involves recording the address, taking photos, and then using “skip tracing” techniques to find the homeowner’s contact information, allowing for direct outreach. Specialized mobile applications can assist in mapping routes, logging properties, and managing lead information efficiently.

Networking with real estate professionals is another effective local approach. Real estate agents, especially those specializing in distressed properties, often have access to information not widely available to the public, including pre-foreclosure listings through the MLS or their professional networks. Attorneys and mortgage brokers can also be valuable contacts, as they are often aware of homeowners facing financial difficulties before properties officially enter the preforeclosure process. Building these relationships can provide a distinct advantage in discovering opportunities early.

Direct mail campaigns involve sending personalized letters or postcards to homeowners whose properties have been identified as being in preforeclosure through public records. The goal is to establish contact and offer solutions before the property proceeds to full foreclosure. These campaigns often emphasize empathy, acknowledging the homeowner’s difficult situation and presenting options such as a cash sale or assistance in navigating the process. Consistency in outreach is important, with some strategies recommending repeated mailings to homeowners as their preforeclosure timeline progresses.