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How to Create the Perfect Pre-Foreclosure List

Jerry Norton

Aug 8, 2024

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When you’re looking for real estate leads, you may be considering several lead types, including:

Here’s a question for you: have you considered pre-foreclosure properties?

After all, pre-foreclosure properties come with a ton of advantages: motivated sellers, below market deals, and potential plenty of ROI potential if you fix and flip. 

That is … if you know how to find pre-foreclosure properties.

In this article, we’ll break down just that — 6 proven ways to find pre foreclosure properties, along with the advantages and disadvantages of this real estate lead option. 

If you’re ready to find your next pre-foreclosure property, let’s get started! 

How to Create a Pre-Foreclosure List

#1: Propwire

The best way to find a pre-foreclosure property is to use Propwire. 

With Propwire, you can search 157+ million MLS & off-market properties 100% free!

But not only that; by choosing from the pre-foreclosure lead type in Propwire’s database, the map will filter to only pre-foreclosures in your area.

Finding a pre-foreclosure property to invest in has never been so easy!

And that’s not all. By using Propwire’s industry leading skip trace feature, you can find the property owner’s name, address and contact information for just 10 cents. 

#2 Real Estate Agents

Another option to find pre-foreclosure properties is to utilize the skillset of local real estate agents. 

Because real estate agents are the go to source for all properties on the market, they will likely be well versed about pre-foreclosures in your specific area. 

#3 Public Record 

Since pre-foreclosures are public record, you can find more information about them at your county recorder’s office. 

Once there, look for Notice of Sale or Notice of Default documents, which will help you not only identify properties in pre-foreclosure, but also the property owner’s name and address. 

#4: Real Estate Wholesalers 

A real estate wholesaler — someone who acts as the middleman between a distressed seller and an interested buyer — will likely have leads on pre-foreclosure properties in your local area. 

Enlisting their help will require networking, and potentially a fee. 

#5: Real Estate Attorney

Because property owners in foreclosure are represented by a real estate attorney, utilizing the help of a real estate attorney can be another way to find pre-foreclosure properties. 

You can find real estate attorneys through:

  • networking events 
  • networking platforms online
  • Social platforms online
  • referrals

#6: Newspapers

Because newspapers typically provide a list of properties that will be auctioned in the future, it’s another way — and certainly a cheap way — to find pre-foreclosure properties.

Advantages of Buying Pre-Foreclosure Properties

Investing in pre-foreclosure properties comes with many advantages, including: 

Below Market Deals

Because homeowners in pre-foreclosure are often motivated to sell quickly to avoid foreclosure, a below market deal is more than likely compared to other real estate lead types. 

Help the Homeowner

Did you know that investing in pre-foreclosures actually helps homeowners?

It’s true — the homeowner can avoid the devastating consequences of foreclosure and potentially salvage their credit score by selling their property to an investor like you as soon as possible. 

Disadvantages of Pre Foreclosure Properties

Poor Condition

Homes sold in pre-foreclosure will be sold in poor condition, making the cost of a fix and flip that much more costly. 

Liens

Unpaid liens may exist on pre-foreclosure properties, which you as an investor will be responsible for upon purchasing it.

The Bottom Line: Pre Foreclosure Properties

Pre foreclosure properties can be a valuable real estate lead source for real estate investors — if you know where to find them. 

Use Propwire’s industry leading tools to find your next pre-foreclosure property today..