The real estate market is currently at a standstill due to the economic crisis that the nation experienced in the mid 2008 until this time. Many people all across the nation are losing their homes to foreclosure due to the rapid decline in the real estate market.
Real estate investors are taking advantage of this opportunity by purchasing these properties and holding them until the market redeems itself. The source for foreclosure auctions in California usually starts at the courthouse where the process is initiated and ends. Many of these auctions take place on the steps of the courthouse at a date and a time determined by the court system.
Before the foreclosure process takes place, the banks will publish the pending foreclosure in local journal newspapers. If you are privy to this information, you have a likely source for foreclosure auctions in California. This will allow you to do more extended research on the property of interest and follow the foreclosure procedure up until the time it is being sold at auction.
There are some homeowners who purchased their homes through the Veterans Association and HUD. These two government agencies hold their own foreclosure auctions. These agencies use specific real estate agents as their liaison to sell these foreclosed properties and get them out of their inventory.
Freddie Mac and Fannie Mae, in the attempt to help first time homebuyers, who can only afford low interest mortgage loans, will offer banks and lenders insurance to cover these mortgages.
When the loan is defaulted, the bank or lender will foreclose on these properties and make an attempt to collect the insurance coverage payment from Freddie Mac and Fannie Mae that was originally extended toward the issuance of the mortgage.
The real estate then becomes the property of the government and goes into an inventory pool. Of course, the government does not want to hold on to these properties so public auctions are held to sell these foreclosed properties and recover any loss or damages.
These are some of the primary sources of foreclosure auctions in California and across the nation as a whole. Real estate agents chosen by HUD will be paid up to 6% commission on all real estate foreclosure sales that are made by them. This commission is added to the price that the bidder makes on the property sale.
The courthouse is a tremendously beneficial source for foreclosed properties in California. If you go the courthouse directly, you will be able to get a list of all the foreclosed properties, the addresses, name of home owner, name of bank, date of default, date of foreclosure and location. This is public information and where most real estate investors get the information from.
Your local real estate agent is a great source of information and details to foreclosed properties in California. Title companies and escrow companies are also privy to this information in most cases.
There are also companies online that offer foreclosure listings for a monthly subscription fee. Many real estate investors use this method as a source for foreclosure auctions in California.