With the nationwide moratorium on foreclosures lifted, ATTOM Data, a leading provider of real estate data and news, issued its January 2023 Foreclosure Market Report showing residential foreclosure filings are up 36% from last year. Though 36% sounds extreme it really is clearing the backlog of existing loan problems that were put on hold beginning in 2020. In actual numbers, foreclosure filings are down when compared to 2019, the last “normal year.” For the small real estate investor, Rick Sharga of ATTOM Data states that with inventory low and interest high, foreclosures will remain fairly low, with normal levels returning in the third and fourth quarters of this year.
States with the most significant foreclosure starts as of February 2023 were Texas, California, Florida, New York, and Illinois. The states with the highest foreclosure rates were Delaware, Illinois, Michigan, New Jersey, and Maryland. ATTOM Data also reports that zombie foreclosures (pre-foreclosure properties abandoned by owners) are up 5.4% nationwide.
That said, Zillow outlines ways you can locate foreclosures without resorting to subscription websites in their post, How to Find a Foreclosure.
1. Find a foreclosure real estate agent.
2. Search “foreclosures” in the “for sale” section of Zillow.
3. Check the legal notices in your local paper for auction houses in your area. Auction companies might hold huge foreclosure auctions, but Zillow cautions against getting caught up in the excitement of the bidding process, and buying properties “as is.”
4. Many banks, or their asset management arm, have an inventory list of foreclosures on their websites.
5. Check foreclosures listings on the websites of Fannie Mae, the Federal Housing Administration, the Treasury Department, and the Small Business Administration.
6. Search for a Notice of Default, lis pendens, or Notice of Sale at your County Records Office.
7. Go to the neighborhood you are interested in working in for look for “foreclosure” or “bank repo” signs. Speak with the agent listed for information on other properties in the area. While youre there, look for distressed properties you can market to.