Posted by Chris on February 26, 2000 at 14:49:59:
Your best bet is to check with local investors from your RE Investors club and then schedule a consultation with a real estate attorney for the procedure in your area as far as redemption rights for the owner as well as a general overview of the foreclosure timeline in your area. You can find a club in your area by going to the yellow banner on the left side of the page and going to the link for REI Clubs.
There are different procedures depending on if your state if a mortgage state or trust deed state-some states have a combination of the two.
When a lender starts the foreclosure process they are required to provide public notice. Check your local newspaper for legal notices. There are legal newspapers that have this information as well as bankrupcies,etc. See if your area has a legal newspaper. There are also services that you can subscribe to that will provide you regular updates on legal filings such as foreclosures. You can see if your county has these records available on the web or take a drive down to the courthouse to see about accessing these notices.
The owner is who you deal with until the property is sold at auction-in California they even have a 5 day period before the auction where the legal right to reinstate the loan expires.
If you use postcards to target these owners do not have the word FORECLOSURE on it. For postcards something along the lines of “I BUY HOUSES…” is preferred. These homeowners are embarrassed enough and do not want their situation to be broadcast for everyone such as the mailman to see. If using direct mail methods with specific targets such as this have your sales pitch sealed in an envelope and I would recommend that you do not print out their address on the envelope, write it out by hand to give it a personal touch. They will be receiving letters from other investors doing the same thing as you, so if your letter sticks out and seems more personal that will lessen the chances of it going in the trash before being opened.
-Good Luck, Chris