How can I find out about bank owned homes before they come on the market?

How can I find out about bank owned homes before they come on the market? Great question, all 121 people who've asked me this!!

So here's the answer, in a compilation of all the emails I've written in response.

1. You can keep an eye on public records, or visit websites that do this, like www.realtytrac.com However, they're not always the best about delivering timely information, so the grantee/grantor index at your local recorder's office will usually input the new details much quicker.

2. Large banks assign their assets to a variety of agents, so there's no one agent who has all the listings. If it's a smaller community credit union or bank who now owns the asset, you may be able to find out who has been assigned the listing, and then followup and express your interest.

Note-- if the question you are really asking is: how can I get a screaming deal before anyone else even hears about it... STOP and ask yourself-- if you were the bank and had dozens/hundreds/thousands of homes you had to sell, would you spend your time haggling with one individual who probably offered a lowball price, or would you open it up to the general public where you could benefit from some healthy competition and end up getting a much higher price at fair market value?

Or, your question might really be: how can I cut a deal with the homeowner before they short sell or it goes into foreclosure?

Answer-- you don't want to!  If they are in default, if they owe more than their home is currently worth, you don't want to take over their loan because it's for a much higher amount than current fair market value. And, once they have stopped making payments and are in default, the disposition of that note isnt' really up to them-- the final decision is totally up to the bank. Only the holder of that lien can say what amount they will accept. And the banks want short sale sellers to work directly with licensed real estate agents only-- no for sale by owners allowed.

Bottom line is-- you ARE getting a GREAT deal!  Just look at what prices were 3-4 years ago, and enjoy.