With national foreclosure default filings growing over the course of 2006, evidence mounts that an increasing number of U.S. homeowners are struggling to keep up with their monthly mortgage payment.

The growing number of foreclosures puts pressure on construction. Builders have seen a decrease in sales of homes. Speculators are now realizing the fact that their "investment" is beginning to lose equity. They have to reduce the price of their homes.

Add to the problem an increase in mortgage rates and a hit on gasoline budgets and home owners have lost a large portion of their buying power

The downward pressures on the real estate market continue to mount and prices will fall even quicker as foreclosures flood the market.

Consideration points:

1. The demand for housing is growing due to foreclosures.

2. Home builders are still expanding their supply.

3. Real estate investor psychology http://laneqaxs995.bravesites.com/entries/general/the-most-pervasive-problems-in-realtors has changed, decreasing demand.

These market conditions are what will allow the real estate investor who is smart to discover real estate opportunities in the down times.

Foreclosure Process Overview

Every state has its own unique version of foreclosure. There are two different ways for a foreclosure to take place:

Judicial Foreclosure (Time Between 10 and 12 Months

1. Three consecutive months a homeowner defaults on their payments

2. Lender hires the services an attorney

3. The legal firm will prepare the Notice of Default at the county court.

4. Information on public records will be given with the notice of default for four weeks.

5. After four weeks, the house will go up for auction to the most bidder in the county courthouse.

6. The homeowners are given six months to bring their account current and pay off lender.

7. If the homeowner is able to refinance their mortgage or sell their house or get enough cash to pay off their mortgage, they will be able to save their house within this six-month period.

8. The bailiffs from the courthouse will show up at the home of the homeowner in six months to remove those living there and change the locks.

9. The house has officially been foreclosed. It is now the property of the bank or investor who purchased the property at the auction in the courthouse.

Non-Judicial Foreclosure (Time interval of 4 to 5 months)

1. Three consecutive months of inability to pay by the home owner.

2. The lender will forward the matter to an attorney.

3. The legal firm will prepare a Notice of Default (NOD) in the county clerk office.

6. The auction is over in three to four days , and the property is returned to the investor or seller who bought it at auction.

Foreclosure Profit Opportunities

There are three stages to a foreclosure opportunity that are: before the trustee's auction during the sale of the trustee, or after the sale by the trustee.

* Before the Sale - The period between the point at which the homeowner has stopped making mortgage payments and the property will be put up for auction. Investors can use this opportunity to speak directly to the homeowner.

* The Sale – When the courts take possession of the property owned by the homeowner and then sell it to the highest bidder. The process is managed by the county sheriff or a trustee, depending on the state in which it is located.

* After the Sale If the property is not sold at auction, or if the lender wins the highest bid, then the home is REO, or "realty that is owned" by the bank. These REO properties are then put up to banks for sale through an agent or third-party market company.

Locating Foreclosure Listings

There are a number of online sites provide trial memberships. explore a few foreclosure listings websites and decide which provides the most up-to-date listings. You can locate foreclosure listings by going to the local recorder's office, and then taking photoscopies. Listings are regularly updated.

Using the Internet, a number of websites permit searches using state, county, city or zip code. As with every product, performing your own comparison of foreclosure listings will give you the best value and price. Take advantage of the free trial period and test the listings. Sites should provide the most up-to-date listings, with regular updates on a daily basis.