Professionals in the distressed property field know that in order to compete, you have to have specific info at your fingertips: the details of foreclosures, abandoned and government-owned property, and REO's.

The pre-foreclosure stage is the stage in the foreclosure process when the property has not yet gone to sale. A future sale date will be referenced in the Notice of Sale ("NTS"), filed approximately 90 days after the Notice of Default ("NOD").

Prior to an actual sale date, property owners are often motivated to negotiate with someone who can help solve their short-term problems. There are numerous profitable strategies for helping property owners in financial distress while acquiring valuable rights and options for yourself. Small investments can pay huge dividends. Your only limit is your creativity and negotiating skill.

Foreclosure - A legal process in which, against the wishes of the owner, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.

Notice of default (NOD) - a notice that is filed with the county recorder when a homeowner is not current on the loan that is secured by the homeowner's property. If the default is not cured within a statutory period of time, the lender can move to auction the property to the highest bidder.

Foreclosure Sale (NTS) - The actual sale of real property at the conclusion of a foreclosure proceeding. The sale may be to a third party as a result of a high bid, or to the foreclosing creditor (the lender) if there are no bids higher than the amount of the defaulted debt plus foreclosure costs. If the sale generates proceeds beyond the satisfaction of the debt and foreclosure costs, the balance generally must be refunded to the party who has lost title to the property. (the homeowner)

Real Estate Owned - Real property that has been foreclosed by a lender and is now owned by the lender.

The timeline displayed here is typical in a California non-judicial foreclosure. The foreclosure timeline does not begin until the lender feels they have exhausted all avenues for curing the payment delinquency. Normally, this happens after the borrower has missed 1 to 3 monthly mortgage payments. The borrower has probably been contacted by the lender several times prior to beginning the foreclosure process .The official foreclosure process then begins by the lender contacting a Trustee and instructing them to file a Notice of Default.

The final stage of the foreclosure process is the auction. In most cases the borrower has tried every possible way to save the property (refinance, borrowing, sale, joint venture, etc.). Auctions typically take place at the civic center or the courthouse of the county where the property is located. Auctions start at all different times of the day so it is important to do your research and make sure you are prepared before auction day.

The auctioneer usually begins the auction by stating which property sales have been cancelled and/or postponed for that day. Next the property address and/or APN number (assessors parcel number) is announced and the opening bid follows. The opening bid is almost always determined by the principal loan amount that is owed to the lender initiating the foreclosure. This opening bid amount will usually include the principal balance, late fees, interest due, attorney fees, trustee fees, etc.

This is a tremendous way to make money in the foreclosure field. The auction generally requires a "cash" purchase and it is not uncommon for properties to be sold for substantially less than their current market value. To keep you further informed, ListsPlus.net offers "auction tracking" so that you will know of any auction delays and the new date scheduled for the auction.

Properties are sold "as-is" for cash or cash equivalent. Use extreme caution when buying at a Trustee's Sale; make sure you know everything about the property because you'll own it. You will need to track properties you are interested in, making sure to record postponement dates and reasons for postponement. Keeping an accurate database is essential. When a property sale has been postponed, many times other investors will lose track of the properties, thus reducing competition at the actual sale. ListsPlus.net offers tracking for all properties using a Trustee Sale Number (TS #). When you are seeking information regarding a property, this number is used to reference the property.

Trustee's are the ones processing a foreclosure and typically the only information they will give out regarding a property will be the date, time and location of a sale, along with an opening bid price.

At many trustee sales no one outbids the amount owed to the lender, who then owns the property by default. Lenders are motivated only by the need to recoup the amount owed on their original loan. The lender now owns the property, which is dead money for them, with many associated expenses. This is not what they want.

Listsplus.net offers immediate online listings of all properties the moment they become REO's, giving you the opportunity to purchase property before the lender has to do anything to prepare the property for sale. Lenders like to do business this way, because it saves them time and money. BANKS DON'T WANT TO OWN REAL ESTATE.