Your path to buying foreclosure land for sale
Though an unfortunate situation for many, foreclosure land does present interesting opportunities to investors.
As a land buyer, lots that are in foreclosure, or even pre-foreclosure, can save you quite a bit. Since the majority of foreclosed property is residential, however, foreclosure land for sale can be a bit difficult—especially when considering the situation at-stake and its timing. In this post, we’ll break down the best resources to do so, covering both on and off-market tools.
How to find foreclosure land for sale
Pre-foreclosure and foreclosed land offers commercial real estate buyers a lucrative opportunity for investment. Foreclosed properties are essentially held in limbo by a bank until they’re sold to a new owner. With that, these properties can often come at discounted rates. It’s just the process of actually finding and transacting those properties that can be troublesome.
Finding distressed land properties off market
One of the main reasons it’s difficult to find foreclosed land and commercial properties online is because most online listings platforms focus on foreclosed residential properties. Enlisting the help of a broker or lender with insights into the market can be a great way to find deals for distressed or foreclosed properties.
You might also look for some technological help via Reonomy, where you can quickly identify land in pre-foreclosure along with the contact info for the owner of that land.
Reonomy pre-foreclosure property intelligence
Before a parcel even reaches foreclosure, you can reach out to the owner directly and make an offer using Reonomy’s pre-foreclosure search filter and access to property owner contact information. You can find properties based on category of pre-foreclosure—from Final Judgement of Foreclosure, to Lis Pendens, and Notice of Defaults. Search for one or all of these categories in your ideal market.
Your other option is to search by a pre-foreclosure property’s date of auction. This can give you some insight into how much time you have left to make a move. You can search more than 200 different property types and sub-types in every U.S. county, to find owners in pre-foreclosure and pitch the best deal possible.
Browse public records
You can also use public records sources to find foreclosure land for sale. Legal notices on the foreclosure process are filed by your County Recorder’s Office. You can easily pull up these records on local foreclosures by searching for Notice of Default (NOD), Notice of Sale, or lis pendens.
In addition, you can also find foreclosure properties by searching for national and local banks with foreclosed properties. Contact the banks directly for more information on any local properties you find.
Pre-foreclosure land for sale by owner
Foreclosure land listings already offer an attractive price point for commercial real estate buyers, but for sale by owner (FSBO) listings platforms can help you save thousands on your purchase. Platforms that list FSBO listings allow you to source and purchase foreclosed plots without any of the red-tape and added fees that come with bank-owned property listed by an agent or broker.
Foreclosure.com allows you to save thousands on added commissions and additional real estate fees with FSBO foreclosure land listings. Foreclosure.com provides an easy-to-navigate map of the US states and their subsequent counties.
You can refine your search based on price, property type, and market value. It’s free to sign up for notifications, and you can create your own profile to save previous searches and attractive foreclosure listings.
You can use FSBO.com to search from thousands of available FSBO foreclosure land properties. You can search based on your target state, county, city, or zip. FSBO.com provides detailed listings – breaking down price, square foot, and property type – from multi-family to commercial.
Foreclosure land for sale listings websites
Beyond FSBO listings platforms, you can also widen your search and look for foreclosed land properties for sale on commercial property and land listings platforms. We explore the best below.
Bank Foreclosures Sale
Bank Foreclosures Sale lists thousands of bank foreclosed properties every month. You can narrow down your search based on state, city, and price. Bank Foreclosures Sale also provide photos of each of the foreclosed investments for sale, allowing you to fully envision your future purchase.
Land and Farm
Land and Farm lists thousands of diverse commercial, residential, and land listings in each of the U.S states. Land and Farm listings amass to over $294 billion of rural real estate. While the site is not tailored to foreclosures specifically, they do have a section for Auction land, which can bring the same benefits to a buyer that foreclosed land can.
As one of the most popular commercial real estate listings platforms available, LoopNet also allows you to search through a fair amount of “Bank Owned Property,” of which foreclosures may be included. Though you cannot filter to only see land parcels, LoopNet’s interactive aerial map enables you to search from available potential foreclosure listings in your target geographical area.
LandWatch provides browsers with nearly 1.4 million land listings to choose from, including commercial properties in the US and internationally. They also include let you search among bank owned land, short sales, and auctions on their site. You can narrow your search to focus on plots that fall within a certain price range. In addition, you can also find an agent or broker to help you buy a foreclosed property quickly and efficiently thanks to the LandWatch directory.
LandCentral.com releases a new list of land foreclosures every month. The platform provides a range of plots of foreclosed land across the US, each offering different price points and plot sizes. By subscribing to LandCentral’s email list, you can receive monthly notifications as soon as a new plot of foreclosed land has been listed.
Tranzon is another popular website offering listings on foreclosure land and properties in the commercial and residential real estate space. Set up in 1997 by a group of real estate auctioneers, Tranzon mainly focuses on auctioning off available properties – which you can bid on either online or in person. In addition, Tranzon also provides a downloadable “Property Information Package,” which includes extensive details on all of their listed properties. Moreover, you can also tour each of the properties before you decide to bid at one of their property auctions.
RealtyTrac covers the residential market – focusing on bank foreclosure homes for sale. They have listings for foreclosures, pre foreclosures, auctions, bank owned, and more.
Lands of America
Lands of America is home to over 5,300 members selling rural land and property. You can search for land and property based on state, price, and acres. While the site does not include foreclosure listings, you can also use Lands of America to network with leading real estate brokers, agents, and developers specializing in rural real estate across America. Lands of America offers detailed profiles of each of the plots and properties on offer, with a gallery of shots and direct contact details of each listing owner.
Potential drawbacks of investing in foreclosed land
Despite the promise of a higher return on your investment, foreclosed land is tied to a few drawbacks that you need to be aware of. Foreclosed land can be high-maintenance as property has fallen into disarray. Look for land properties that require few repairs to improve your ROI.
Undertake due diligence, and trust your gut – if you sense something is ‘off’ about a potential plot, listen to your instincts and don’t let the excitement of a potentially lucrative foreclosure investment draw you in – ensure you know all there is to know before you make a purchase that could come with hidden issues. Before diving in to your foreclosure purchase, carefully consider the profit you’ll turn over on the plot in question.
Is your plot in an ideal location?
Does the land you have your eye on align with your development vision? The weight of tax laws, zoning regulations, and other additional fees and regulations should also be factored into your purchasing decision. In addition, inexpensive foreclosure land tempts many investors and buyers – so you need to act quickly to find the right plot.
Landing the right deal
Knowing where to look for commercial foreclosure land for sale can seem daunting at first, with a quick Google search bringing up step-by-step guides and property listings related to the residential market. Luckily, there are a number of great resources for finding distressed land properties for sale online.
This list should give you all you need to help you find foreclosure land in the commercial space, bookmark these sites and connect with your local lenders and brokers to begin your search for your next foreclosed land investment.