Pre Foreclosures, Rookie Needs Help

[younginvestor]

I am trying to target pre-foreclosures and abondoned / dilapidated properties in Toronto, Ontario, however, finding a abondoned house, or dilapidated properties here is unlikely, since everything is appreciating in value like crazy. Pre-foreclosures is private information, and is Illegal to aquire for an investor, due to the Privacy act.
I wish to start off in the states, since hard money lenders, and preforeclosures are easier to get down there.

Q: My question is how do you get a list of pre-foreclosures / people who are delinquent on their mortgage payments, in a specific area (Lets say somewhere in Michigan), so if I were to go to Grand Rapids, Michigan, where would I go to obtain a list of pre-foreclosures?

Once I obtain the list, Im assuming my next step would be to get comparables, and pick out a homes from that list, by seeing which homes would have the best profit margin and least amount of rehab?
Please Advise
 
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[ShortSaleMike]

younginvestor,

I receive lists from various bank asset managers for areas in Michigan. Most properties iare in Wayne county, some Oakland, Macomb, Genesee. These properties are either vacant or occupied but both approaching the end of redemption. The bank gives me a chance to buy these REO properties right after the redemption period, but just 2 weeks before they get listed with an agent.

If you're interested I could send you the list for your evaluation and then if you'd like to make an offer, I can submit your offers to the bank asset manager. Send me an e-mail if you'd like to discuss further outside of this discussion thread.

I also have a number of contacts in Michigan who generate foreclosure lists if you're interested in marketing for pre-foreclosure and short sale leads.

- Short Sale Mike

[younginvestor]

Nm, I think something was wrong with the server, they both went through.

[Lin]

Hi Mike...it is me again....How did you go about getting the contacts with the mortgage companies to get a list of after redemption but before listing.  You go guy!!!  Man I have a lot to learn.. 8)

[oklahomaSS]

There is a difference between PRE-FORECLOSED and FORECLOSED homes. I think the starter of this post was looking for Pre-Foreclosed homes. Not Foreclosed homes.

[younginvestor]

oklahomaSS, is right, I was looking for pre-foreclosures, and how to aquire a list of homes that are in pre-foreclosure however, foreclosure will work to, if you think that I can get 20 maybe 30% off of the fmv dealing with banks and foreclosures.

Also, I had a friend of mine call up a local bank, in Michigan, for foreclosure list, and they said that they do not give this information out to the public? What the hell? I have been told so many times that this is how it works.
He also tried to go to city hall and ask for this, and they want money, and he said its not cheap. Again....wth?
Can someone explain plz

[turborocket]

Big banks have asset managers, clearing-houses and such to deal with their REO inventory.  They don't typically deal with buyers directly.  Smaller community banks will work directly with individual buyers.  

As for the City Hall question... I suspect that the result of a sheriff sale-equivalent would be published some where for public consumption.  Usually in the local legal newspaper or in a county paper, etc.  If neither, there is probably an entrepreneur collecting this information and selling to investors like yourself.  

[younginvestor]

First off, thank you for the replies, its greatley appreciated,

So if I wish to purchase a foreclosed home, close to 20-30% off of fair market value, I have to deal with smaller banks only?
What if the smaller banks dont have too many homes that they own? or would this not be possible, because their inventory is still pretty large?
For the larger banks, is their a way to purchase their reo properties, or do they all just get listed with the mls system?

[oklahomaSS]

The city hall wants money? Tell them you don't need copies!! That's what is costing you. There public records and can be viewed by anyone for free!! Take a pen and paper, write down what you need. Once you have closed a lot of deals, get them copied, saves time, but for now, do the work yourself.....see if that works

[turborocket]

From my experience, big banks' REOs go to realtors to list.