There are many sources for leads for the Foreclosure listing and just as you can pick up leads for a regular listing, these same sources are available to you as a foreclosure agent and more! There are slightly different approaches according to the state you’re practicing real estate in. The first thing you should do is find out if you are in a judicial or non-judicial foreclosure state. There are two main differences between these.
In a judicial foreclosure state like Florida and New York, the foreclosure process takes much longer because everything must be done properly and legally and goes before a judge with an actual hearing and being served official lawsuit papers. In Miami Florida it can take between 8 months to at least one year is normal. On the other hand, Texas is a non-judicial state and the property can typically go to foreclosure as soon as 21-days after the notice of default is served.
The time frame is a a big difference and a lot of people are glad they live in a judicial state. On the other had, many people are glad they live in a non-judicial state for a different reason. in the judicial state, if a property actually goes through foreclosure, the lender always files a deficiency judgment against the borrower. the lender is then allowed to pursue the borrower with all legal means to collect the difference between what was owed on the property and what the property ultimately sold for after foreclosure. A judgment is good for ten years in Florida and can be renewed for another Ten Years. In the non-judicial state if it actually goes to foreclosure, the lender is done has no further foreclosure occurs. The lender will simply mark in the credit report something along the lines of, “Account Settled. Not for full amount” This is an excellent reason for the home owner to do a short sale since the deficiency judgment is rarely filed. In a foreclosure, it is always filed.
Occasionally, the lender will state in the approval of the sale letter that the home owner understands that they (the lender) is reserving the right to pursue the borrower for the difference. This worries the home owner needlessly. The lender knows the home owner has no money to spare at this time so hopes the borrower will win the lottery or something in the next year or two. Without judgment filed, the lender (I’ve been told by an attorney) loses his right to pursue after 2 years and reserving the right to pursue is mainly to appease the stockholders the lender has to answer to.
