Many real-estate brokerages have agents who are experts on foreclosed properties. Some of them advertise that skill in local real-estate publications. Agents who work regularly with banks in finding buyers for foreclosed homes should be able to let you know what's available and guide you through what can be a complicated process.
A good source of data on repossessed homes being sold by the U.S. government is the Web site of the Department of Housing and Urban Development (www.hud.gov). Additionaly. Foreclosure.com is a very informative website that lists hundreds of foreclosed property.
Information on available homes is updated weekly.
Be warned that the pursuit of foreclosed properties is highly competitive in some markets
and no sure ticket to riches.
You should invest in houses only if you are confident that you can make at least a 15 to 20 percent return on your money. You will want a wide margin for error because the costs of rehabilitating and selling a house can be hard to predict. That furnace that seemed sound could conk out before you sell the house.
Aside from the cost of buying and fixing the house, you need to add up the likely cost of financing, insurance, taxes and any brokerage commission on your eventual sale of the property. It's not as cut-and-dried as you might be led to believe, but it can be very profitable if you get it right.
How to Find Foreclosure Properties
