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The terms “private mortgage companies” and “private companies” are
interchangeable but let’s stick with the latter term because it is used widely.
This might surprise you, but mortgage companies account for at least
selling half of the home mortgage share in the housing market and that is their specialty
business, selling home mortgages.
Many of these companies have regional or local divisions and these local
divisions have Real Estate Owned Sections (REO) who are in charge of selling foreclosures for the
lender.
Find the phone number or email the office and let them know about your
interest of buying foreclosure and to include your name in their investors’ list as
well.
Another way that is less common but as effective is to visit your city
courthouse and look for the mortgage foreclosures records and find out who the lender is who
usually has an address, phone numbers, fax numbers, or email address in the
records.
In our present time many lenders use the internet to list their
foreclosures under the name Real Estate Owned like LendingTree, Countrywide, and so
on.
2) Banks
Even though banks are traditionally not primarily specialized in mortgage
loans like mortgage companies, but that is no longer true and they are competing with others in the
housing market.
You can call your local or national banks like Bank Of America or Wells
Fargo for example and ask for the Real Estate Owned Department and find out about their
foreclosures list.
Tell them that you are interested in buying foreclosure and what is the
next step for you to do. Like mortgage companies the bank can include your name in their list and
send you an email, regular mail, fax, or phone call notification.
Many of the larger and smaller banks post their foreclosure list or REO
properties on their websites which can make it more convenient for you. Nevertheless, be more
active and visit your local banks whenever possible and create business relationships as it can
enhance your image as an foreclosure investor.
3) Credit Unions
Credit unions are similar to banks with few differences. For example, only
some members who belong to particular organizations can belong to credit unions such as government
departments, universities, or religious organizations. Another major difference from banks is that
they are exempted from federal tax.
And because they provide home loans, some of these loans become defaulted
and foreclosures become reality. Any like other lenders they want to get rid of these foreclosures
as soon as possible.
Find out the locations and other contact information in your area and
contact the REO office and explain your interest about buying foreclosure. Bear in mind that the
credit union is relatively small compared to commercial banks so it is a good idea to have a list
of more than one.
4) Insurance Companies
For many readers that might be another surprise to recognize insurance
companies are also invest in real estate properties and not solely provide insurance. They are more
focused on commercial properties rather than the traditional single houses.
Examples of properties they usually invest in are like,
1- Commercial buildings,
2- Shopping stores,
3- Restaurants, and
4- Complex residential properties.
Insurance companies like other lenders also have local or regional
branches where you can call to find out about their REO department.
Getting in the business of buying foreclosure is something can be very
profitable and like other legitimate businesses it takes a fair amount of time and effort as you
start to be good at it and the more you research about it the better you get at it.
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