Welcome to a comprehensive resource for learning everything you need to know about  Buying a Foreclosure Property or Avoiding Foreclosure if you already own.

If you are interested in receiving a complete listing of foreclosure properties in a particular area of Los Angeles please click here and complete the form.  Please be sure to include your email address so I can email you the foreclosure listings.

Tips for Buying a Foreclosure Property:

1. Find and Track Properties: timely information is key to success with foreclosures so make sure you are getting up-to-date accurate information and you have a reliable system for tracking multiple properties at various stages.  Real estate professionals can run searches for you and there are websites that you can subscribe to like Realty Trac and Retran.

2. Contact the bank or lender that has the Property.  If it is a major institution like Wells Fargo or Bank of America or Countrywide, they require that you first get pre-approved by one of their mortgage counselors.  Visit their website or call or visit a local branch for that bank and get pre-approved.  Your offer will not be considered without first being approved.

3. Contact a Real Estate Professional.  Even if you have personally been involved in numerous real estate transactions, it is recommended you leverage the services of a realtor.  Our fee will be paid by the bank and we will inform, educate and protect you throughout the entire process.

4.  Negotiate a Purchase Agreement  If both you and the bank agree to proceed, you should start negotiating the terms of the purchase agreement. A real estate agent can be a valuable resource during the negotiating process.

If state law allows a redemption period for the owner after the bank takes ownership of the property, you may have to wait until the end of the redemption period – several weeks or several months, depending on the state – before the bank is willing to sell the property. During the redemption period the owner can regain ownership of the property by paying the total amount owed to the bank plus any applicable foreclosure expenses.

The bank’s primary goal is to at least break even on all the costs that it has sunk into the property. That includes the unpaid balance of the loan, the expenses associated with the foreclosure proceedings, other liens and repairs to the property.

5. Close the Deal Once you’ve arrived at an agreement with the foreclosing bank, you can put the agreement in writing. You should have a local real estate agent or real estate attorney help if you’re not familiar with how to draw up a purchase agreement.

Tips from the US Government Housing Department on Avoiding Foreclosure:

If you are unable to make your mortgage payment:

1. Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.  

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments.  Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.  

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide.  Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your first priority.  Review your finances and see where you can cut spending in order to make your mortgage payment.  Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets.  

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income?  Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.  

9. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home!  Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.