Many consumers are baffled by the onslaught of foreclosure reporting, listing or information services. Many are confused about the different types of information available or even the kind of information they need. Even some industry professionals aren't sure what to make of many of these services.

Unfortunately, there is too much misinformation regarding lists of foreclosed properties, whether bank owned or government owned, pre-foreclosure or post-foreclosure, statewide, nationwide or local.

The industry is not what it was several years ago. The economy has improved substantially. Inventories of bank owned and government owned properties are down. The banks no longer just give the properties away. True, bank owned opportunities were more abundant in the past. Today, several lenders enjoy selling their properties at market value. Opportunities will always be available however, for those who take the time to learn and understand the process.

True investors will pay just about any price for quality data. The cost has little significance, as they will make thousands in profits buying and selling the properties. The type and quality of the data you need should help in determining the service you use. The integrity and reputation of the service provider must be considered.

Most Common Questions:

Why do I have to pay for a list of properties, isn't this public information?

The answer is yes and no. The transfer of real property is always recorded in the county courthouse where the property is located. That makes it public information.

A list publisher or consumer for that matter, must request a list of foreclosed properties from participating lending institutions. Why request? Because there is no law stating that the lender must make this information widely available, just as there is no law requiring you to make public a list of your personal possessions for anyone who may demand it. You can, if you so choose, visit your county courthouse, go through all the deed and mortgage books and locate one property at a time, those that have been transferred to the lender. An arduous process at best. An alternative would be to go to every single auction, in every county you have interest in, and watch which properties go back to the lenders. So in buying a list, what you're paying for is content and convenience. By yourself, it would take hundreds of hours and a lot of money to compile the data you need.

Can't I just call the bank and get a list for free?

Again, yes and no. Most consumers have a difficult time trying to reach the right party at the bank in an attempt to get a list. Some lenders are more cooperative than others. Citibank for example, now charges 50 dollars for a list of their properties. While it is disagreeable with this policy, you have to understand their reason. Too many uniformed buyers callthe banks in an attempt to buy properties for 30 cents to 50 cents on the dollar. This charge is most likely an effort to separate the know-nothings from the serious investor. The bank does not want to be bothered by those who do not understand the process or by those who make absurd offers ultimately wasting the banker's time.

Why are some properties sold or not available from the list I just received?

In fairness to all list publishers, many lenders do not update their lists frequently enough. Some properties may be sold. Some may have been off the market for quite some time. NO list of REO properties, can be 100% accurate.

Remember, there is no national network. The proper accumulation and recording of this data is an imperfect science. Data quality and integrity is dependent on the source and the method of reproduction used by the provider.

Are there any good listing services out there?

Yes, several. One good one for example is RealtyTrack noted for excellent comprehensive data service and is highly recommended.

Do your research. Buy the type of information that most closely matches your investing criteria'. If you are skeptical, ask for a sample! Always compare quality and prices. It is up to you to protect yourself from the scam artists.