There are various ways to find investment real estate projects. You can work on your own, hire a real estate agent or scour public records for lis pendens or foreclosure filings. In fact, you’ll find quite ainvesting in foreclosures collection of distressed homeowners where your county or parrish stores foreclosure records.

You can access these records in person, hire someone to look for you or even subscribe to some website that lists foreclosure filings. Yet just because there’s a foreclosure filing it doesn’t mean the bank will ultimately take back the property from the delinquent property owner.

When a homeowner first gets into financial straits with the mortgage company and misses two payments in a row, the lender sends a certified letter to the property owner containing an official “Notice of Default” or NOD that tells the owner that a foreclosure filing can occur if a subsequent mortgage payment is missed. The NOD identifies the past due amounts needed to bring the mortgage current and avoid a foreclosure.

Yet sometimes even if an owner does in fact miss the next payment, the foreclosure filing isn’t automatic. That’s uncommon but it happens. Further, once a foreclosure notice is filed, the bank doesn’t necessarily take back the property. The lender wants to get the “non-performing asset” back to a “performing” status. The last thing a lender wants is a foreclosed property in their inventory.

The foreclosure filing is a legal protection for the lender and is a last resort when the property owner and the lender can’t come to an agreement. The agreement might be a loan modification or a repayment plan and the loan, although it’s in foreclosure, may soon be worked out and the foreclosure lifted. This process is called a “reinstatement” when the mortgage is pulled from the foreclosure pile and back in the “good standing” mix.

As long as the property owner is making a good faith effort to settle up with the lender and the lender can verify that the owner has a plan to get the mortgage current, the foreclosure process will halt.