I found an article written by master of frugality and talk radio star Clark Howard. Clark is a big fan of investing in foreclosure listings, he’s be doing it since 1978. His article talks about the fear running through the housing market right now and that people are even afraid to touch foreclosures. Clark really makes some brilliant points. First that people should not be afraid to buy a foreclosure as long as the price is right. Second Clark also points out that all real estate is local but several unnatural market events came together to make the crisis we are seeing right now. The article is geared more toward owner/buyers and the average consumer but it’s a great insightful article so i thought it should be mentioned here. Check it out below.

Waiting out the storm of foreclosures

from the Clark Howard Show blog

A lot of Americans are afraid to buy homes right now. It’s no wonder that people are skittish about jumping from renter to owner when you think about the constant barrage of “housing crisis” headlines. Clark wants to offer some.., Click here for the rest

An article on Bloomberg.com states home prices in California have dropped 32% suggesting the abundance of foreclosure listings is to blame. California had the second-highest U.S. foreclosure rate in April, one for every 204 households, and the most foreclosure filings for the 16th consecutive month, according to RealtyTrac Inc. a foreclosure listing and data provider

This is good news for owner-buyers and investors but it doesn’t really represent bargains galore as much as it signifies the market returning to normal. What I mean is that real estate prices in California increased so high so fast that normal everyday folks couldn’t afford to buy a house and many of the ones that did buy a home are struggling to keep them. How do I know? Well that why they are being foreclosed. The rapid price declines in California as in many parts of the country is evidence of the market finding normalcy, that magic price people can afford and are willing to pay.

Another article at blackenterprise.com I was reading said it best; “May 21–More than one-third of Los Angeles County families could afford to buy an entry-level home in the first quarter — 66 percent more than a year earlier — thanks to an epidemic of foreclosures that depressed prices, a trade group said Tuesday.”

It’s really just basic supply and demand. When the folks can’t afford the supply demand falls.

You don’t have to find all the foreclosure listings and properties yourself. There is an industry of people lined up and waiting to help you. There are countless others that will help you if you only ask and/or give them a reason.

1. Use bird dogs. No, not really a dog but a person who looks out for distressed property. He or she finds potential deals and sells the “lead” to investors. Many people are willing to bird dog because it does not take any money or special skill to find distressed properties. What you pay this person varies because bird dogs can give you raw leads or they can gather more detailed information for you. Find these people at your local real estate investment club. Just one note of caution, some states, consider bird dogging real estate practice requiring a real estate license. Check with your state’s real estate commission for guidance.
   
2. Ask your mailman. Who knows the neighborhood better than your mailman?
   
3. Pass out business cards everywhere you go with a message on the back that says you buy houses and will pay for leads.
4. Find a real estate agent who will represent you as a buyers agent. Agents work on commission and will support and help you to the end of the earth if they believe you are on the level. The problem is they get calls all day long from fake or wannabe investors. My advice; don’t ask too much up front. Try to get a list of properties and drive by them. Call your agent to show you the ones you are serious about and allow them to handle the sale. After a sale or two you will have a friend in the business.
5. Stay in touch with your sphere of influence. The most successful real estate agents in the business get new business this way. Chances are you probably know 50 people, friend and family types you call by first name. Make it a point to speak with these people on a regular basis (every 1-2 weeks) and ask if they know of someone in need of selling a home. Tip: when you contact them make it a reason other than real estate.
   
6. National Foreclosure Listing services. It’s probably like beating a dead horse at this point but the national foreclosure listing services like Foreclosure.com and Realtytrac can email you listings as they are posted on the market in real time.