Free Foreclosure List

So you want to buy a home and get a great deal?

I think this should be coming close to an end just because every buyer walking through my door wants to buy a home for .50 on the Dollar and they think the answer is a Foreclosure…  This might be possible, but in our area, highly unlikely you will find a “cherry” house at this price.  

Still I got you here because you wanted a list, specifically a Free Foreclosure List.

Aren’t you tired of sites that try make you pay for a Foreclosure List?

There is usually a FREE way to get this list from the County you are interested in. 

At least in Colorado, the County probably has a Public Trustee that handles the Foreclosure Process.

In Montrose Colorado you can find a list of Foreclosures in process at the following web site.

http://www.montrosecounty.net/treasurer/foreclosures/

Then there is a link that says “Active”.   (Unfortunately they don’t keep the old ones that have been sold or withdrawn on their for very long…)  If you click on this “Active” link it opens (if you have Microsoft Word) a text file that shows the active foreclosures being processed.   If you don’t have Microsoft Word, then you can right click and select “Save As” to save the file as a .doc file then you can download “Open Office” and open this file with SWriter (A free word processing program that is a lot like Microsoft Word, but free… and it opens Word (.doc) files.

Some Counties make it much easier than this.  The best advice I have that is generic is to google the County name and find their site, navigate around to the Treasurer or Trustees page and look for a link… However many are trying to move this inventory off the market and make it easier.  Many Counties are providing map based tools that provide all the info… But Start with the County and go to their main site first and it will usually be free or very cheap.  If you are having trouble then call a local Realtor and ask them how to do it.

Now You Have a “Free” List of Foreclosures

So what good does this Foreclosure List do you.  Actually not much! 

All this list really tells you is that these people have fallen behind on their payments on their Mortgage or Note and the Lender has filed a Notice of Election and Demand with the County Public Trustee.  This starts the process.  The Trustee then has 110 to 125 days to set the sale date.    During this period the person has the right to “cure” the default by catching up all the payments, fees and penalties.

So there is no guarantee that this property will go through the “sale” at the Trustees.

Other factors to consider are that there may be second or third mortgages on the property or other liens such as home owners association dues or tax liens.

So basically the best you can do with just this list or most foreclosure lists are either investigate it yourself by calling the owner and/or going to the Courthouse or doing an online search to determine a reasonable level of title research to decide if you want to proceed.

 The Research - Takes Work From Here 

During the Foreclosure process you can work with the owner directly or through your Realtor, to determine if they have a loan you could “assume” and catch up by making up their deficiency.  If they are upside down and have negative value in their home, then you can pursue a Short Sale, where you get the cooperation of the Owner/Seller and the Bank.  The Bank essentially agrees to take less money than they are owed to avoid having to proceed with the Foreclosure and then liquidate the property as an REO.

These sale dates can get postponed.  The owner can apply for a Loan Modification or they might file for  Bankruptcy.  There could be some other communication with the bank that gets the bank to tell their lawyers to delay the sale.   If the home owner can prove the Public Trustee didn’t file all the proper notices in the proper fashion they can force the trustee to postpone the sale.  I have heard but not witnessed the borrower asking their lender (version 4 - i.e. the first lender sold to the second, etc.) to produce the original note.  This has caused some delay, but in Colorado there are provision for the lender to bond for this, so it is temporary. 

I have seen some foreclosures drag on for more than a year with various delays.

What The Foreclosure List Wont Do For You

The list will not tell you the reason the sale was delayed.

The list will not tell you the reason the Owner hasn’t been able to make the payments or if they are interested in selling their home, or if they want to stay. 

This is where the research has to take place.

Other Options for Great Real Estate Bargains

If you are a cash investor you can go to the Public Trustees office and bid at the Sale.  In Montrose County these sales are held on Wednesdays at 9:00 AM (I think… call to be sure).

You need a deposit and good funds by the end of the day.

Some banks are bidding less than they are owed on the notes to try to get other bidders to show up and take it off their hands.

If it goes past the Sale Date and shows up as Sold, it will probably show up as a REO listing on the MLS in about 1-3 months, sometimes longer… Banks do not move real rapidly, sometimes they need to evict people who stay, sometimes, they have tenants to deal with.  Sometimes, they are just busy and it is at the bottom of the pile… 

Patience is a Virtue

Neither You or Your Realtor will likely be able to “hurry up” the Bank.  Patience is a definite virtue for a Short Sale, Foreclosure or REO investor.

If you have specific questions please put comments below and I will try to answer them for you.

Happy Investing!  Chris

Chris Ormsbee is a license Real Estate Broker in the State of Colorado who works at Century 21 Action Realty in Montrose Colorado.  There address is 1245 E Main St, Montrose, CO 81401 and their phone number is (970) 249-7777.  

Chris Ormsbee is not a lawyer or an accountant but he is a “real” person and an Internet Marketer and he has occasionally slept at THE Holiday Inn Express!

Buy a House and check out his other blogs and stuff at:

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This entry was posted on Friday, September 18th, 2009 at 12:26 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.