Most homeowners in financial disaray don't want to sell. They usually exhaust all options to keep their home before it is actually taken over by the bank. Maybe at the last minute, they will list it at or just below market value. To find these people it is best to use a licensed realtor sales associate who has access to the Multiple Listing Services, or MLS. These homeowners are very willing to sell and can be more negotiable than most. To get a list of homes in your area, you can try viewing RealtyTrac online. I am a member of that site and most of my clients have come from there. BUT, before you get really serious, contact a mortgage company or bank to acquire, on paper, proof that you qualify for a mortgage. Most homeowners will not even talk to you unless you can prove the financial ability to buy. Good Luck!
Linda E. Fitzgerald, Re/Max "New Horizons"; covering Ocean and Monmouth Counties NJ www.lindafitzgerald.remax-nj.com

Sat Mar 15 2008, 06:49

Sure. There are plenty of ways of find properties pre-foreclosure.

In that case, you may be looking at a short-sale. As is suggested below, if an owner lists his/her property with a Realtor, it's pretty easy for other agents to search for short sales. Sometimes it's a search condition that's just clicked, or you can look for wording like "third party approval needed."

However, you asked if there's a way of being contacted by homeowners.

Absolutely.

You market/advertise your interest in buying. That's what real estate investors do all day long. You've probably seen those "We Buy Houses" signs along the road. Or cars with "We Buy Houses" magnetic signs on the side. Or "We Buy Houses" cards in the local supermarket. Those are investors looking for distress situations. It may be a pre-foreclosure. It may be a divorce. It may be a job transfer. It may be a new home purchase without the old one being sold.

You might also be able to buy one from a "wholesaler." These are typically unlicensed real estate investors who control properties--sometimes they've bought them, but often they're just controlling them through an option or similar device--and are looking for an assignment fee--often in the $5,000-$10,000 range. So, using your numbers, they might negotiate with the owner to agree to purchase a property for $180,000. Then they assign the option to you for $10,000. Your total cost is the $10,000 assignment fee plus the $180,000 agreed-to purchase price. The advantage there is that a good wholesaler has done most of the work for you. He/she has found the property, negotiated with the seller, sometimes even done title work, and bundled it all up for you. All you do is your own due dilligence, then go to closing.

To find out more, get in touch with a local real estate club. Here's a link to clubs in New Jersey: http://www.creonline.com/real-estate-clubs/nj.html

Obviously, you should have a lawyer assisting you and providing advice as appropriate. Just make sure it's an "investor friendly" one, one who knows and understands what investors do. And make sure there aren't any state laws that will trip you up. I'm not aware of anything in New Jersey (but then again, I don't know New Jersey and I'm not a lawyer), but, for instance, in Maryland (to oversimplify a bit) you must be either a real estate investor or a real estate consultant. And there are very strict prohibitions on any sort of advertising that says, for instance, "Avoid Foreclosure." The point is: Make sure what you're doing is legal.

Hope that helps.

Sat Mar 8 2008, 06:17

Carole,
You are also likely to find homes in that price range in Ocean county, if you really research median prices and eventual selling prices.
Ocean county was particularly hit hard by the (shhhush, don't say it too loud...) recession and therefore there are a lot of distressed sales of people that over-extended and bought that "second home" (thinking it would be a slam dunk, sure fire money-maker) during the boom. Another factor was that seniors who sold high during the boom of thier primary homes (particularly in North Jersey) to move either closer to their children or flock together with other seniors in one of our many "senior developments", while at the same time buying a "winter get-away" home in the Carolinas or Florida, actually decided their children were not that fun and decided that Florida was. With this realization, many senior homes flooded (and still are on) the market.
So, the long and the short of this is...keep your options open in regards to areas, find a good buyers rep (Ahem) who can bird-dog things in the area, who has a good relationship with lawyers and title people who are in contact with distressed sellers and just keep researching, depending on how involved you want to get.
If I can be of any assistance, please feel free to call or email.
Best of luck,
John Jelinski
Crossroads Realty
609-713-3454
johnjelinski_7@msn.com

Sat Mar 8 2008, 05:57

You can get a preforeclosure list. Look at it free athttp:// www.ipreforeclosures.com
Or try to get a short sale. Learn how athttp:// www.foreclosuremillionaires.com

Sat Mar 8 2008, 04:30

Under 200K is tough in the areas you list. Our land costs drive our housing prices.

You mention adult communities....often the base pricing here is less than similar housing that is not in age restricted communities. Without restricting your search to "foreclosures" you might find some real opportunities in these age restriccted communities. Because fewer sellers have been downsizing, the transaction volume in many age restricted communities has slowed. Many sellers who have no mortgages on their proeprties are simply willing to negotiate because they are motivated to sell.

Often I see and hear of buyers focusing on foreclosures and short sales while letting opportunity pass them by.

Fri Mar 7 2008, 23:34

Contact a local title company. Some title companies will have lists available and it would be up to you to contact the owners directly. Good luck!

Thu Mar 6 2008, 18:03

yes there is that is what we call a short sale is the business and as a agent I would be happy to assist you with that please contact me and we can proceed

Thu Mar 6 2008, 18:01