Step 1
Login to your Finders.House account and pull up a zip code or listing you are interested in. Take note of the Defendant Name — this is the homeowner.
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Step 2: Get a status update
It’s not uncommon for homeowners to resolve their financial problems, so verify whether the property is still in default. The trustee who filed the paperwork to initiate the foreclosure should be able to provide this information, their phone number is typically on our listings. The trustee will not know anything about our program, so only ask them if the home is still in default.
Some homes will have an auction date set and state “Notice of Trustee Sale”. If the auction date is listed on our site and not expired it is still viable to take over payments. The cut-off point is 5 days before an auction, after this it will usually be too late. In the example shown the default must be cleared before September 29, 2018 or it will be too late.
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Step 3: Drive by
Once you find a property, go see it so you can get a better idea of its location and condition. This could facilitate a casual meeting with the owner or a chatty next-door neighbor. The owner may still live in the home, so be mindful of their situation when talking to them, or drop off the pre-written contact letter found in your Toolkit.
State-by-State Rules
for Adverse Possession
(Click to open)
| State | Adverse Possession Statute | Time Required (in Years) for Continuous Possession | In Order to Make an Adverse Possession Claim, You must have… |
|---|---|---|---|
| Alabama | Ala. Code Ann. § 6-5-200 | 10 (deed or taxes) | A document or deed, or paid taxes on the property during this time period. |
| Alaska | Alaska Stat. Ann. § § 09.10.030, 09.45.052 | 10, 7 (deed) | A document or deed in the shorter time period noted. |
| Arizona | Ariz. Rev. Stat. § § 12-522 and following | 10, 5 (deed, taxes if city lot), 3 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| Arkansas | Ark. Code Ann. § § 18-61-103, 18-11-106 | 7 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| California | Cal. Civ. Proc. Code § 325 | 5 (taxes) | Paid taxes on the property in this state during this time period. |
| Colorado | Colo. Rev. Stat. § § 38-41-101, 38-41-108 | 18, 7 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| Connecticut | Conn. Gen. Stat. Ann. § 52-575 | 15 | |
| Delaware | Del. Code Ann. tit. 10 § 7901 | 20 | |
| District of Columbia | D.C. Code Ann. § § 16-1113, 12-301 | 15 | |
| Florida | Fla. Stat. Ann. § 95.12 and following | 7 (deed or taxes) | A document or deed, or paid taxes on the property during this time period. |
| Georgia | Ga. Code Ann. § § 44-4-7, 44-5-14, 44-5-161 and following | 20, 7 (deed) | A document or deed in the shorter time period noted. |
| Hawaii | Haw. Rev. Stat. § 657-31 to 31.5 | 20 | |
| Idaho | Idaho Code Ann. § § 5-206 and following | 20 (taxes) | Paid taxes on the property in this state during this time period. |
| Illinois | 735 Ill. Comp. Stat. Ann. § § 5/13-105, 107, 109 | 20, 7 (deed or taxes) | A document or deed, or paid taxes on the property during this time period. |
| Indiana | Ind. Code Ann. § § 32-23-1-1, 34-11-2-11 | 10 (taxes) | Paid taxes on the property in this state during this time period. |
| Iowa | Iowa Code Ann. § 614.17A | 10 | |
| Kansas | Kan. Stat. Ann. § 60-503 | 15 | |
| Kentucky | Ky. Rev. Stat. § § 413.010, 413.060 | 15, 7 (deed) | A document or deed in the shorter time period noted. |
| Louisiana | La. Civ. Code art. 3475, 3486 | 30, 10 (deed) | A document or deed in the shorter time period noted. |
| Maine | Me. Rev. Stat. tit. 14, § 801 | 20 | |
| Maryland | Md. Ann. Code [Cts. & Jud. Proc.] § 5-103 | 20 | |
| Massachusetts | Mass. Gen. Laws Ann. ch. 260, § 21 | 20 | |
| Michigan | Mich. Comp. Laws Ann. § 600.5801 | 15 | |
| Minnesota | Minn. Stat. Ann. § 541.02 | 15 (taxes) | Paid taxes on the property in this state during this time period. |
| Mississippi | Miss. Code Ann. § § 15-1-7, 15-1-13 | 10 | |
| Missouri | Mo. Stat. Ann. § 516.010 | 10 | |
| Montana | Mont. Code Ann. § 70-19-411 | 5 (taxes) | Paid taxes on the property in this state during this time period. |
| Nebraska | Neb. Rev. Stat. § 25-202 | 10 | |
| Nevada | Nev. Rev. Stat. § § 11.070, 11.110, 11.150, 40.090 | 15 (taxes), 5 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| New Hampshire | N.H. Rev. Stat. Ann. § 508:2 | 20 | |
| New Jersey | N.J. Stat. Ann. § 2A:14-30 | 30 | |
| New Mexico | N.M. Stat. Ann. § 37-1-22 | 10 (deed) | A document or deed in the shorter time period noted. |
| New York | New York Real Prop. Acts. Law § 501, 511 | 10 | |
| North Carolina | N.C. Gen. Stat. § § 1-38, 1-40 | 20, 7 (deed) | A document or deed in the shorter time period noted. |
| North Dakota | N.D. Cent. Code Ann. § § 28-01-04 and following, 47-06-03 | 20, 10 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| Ohio | Ohio Rev. Code Ann. § 2305.04 | 21 | |
| Oklahoma | Okla. Stat. Ann. tit. 12, § 93 | 15 | |
| Oregon | Or. Rev. Stat. § § 12.050, 105.620 | 10 | |
| Pennsylvania | 42 Pa. Cons. Stat. § 5530 | 21 | |
| Rhode Island | R.I. Gen. Laws Ann. § 34-7-1 | 10 | |
| South Carolina | S.C. Code Ann. § 15-67-210 | 10 | |
| South Dakota | S.D. Codified Laws Ann. § § 15-3-1, 15-3-15 | 20, 10 (taxes, deed) | You must have a document or deed in the shorter time period noted. |
| Tennessee | Tenn. Code Ann. § § 28-2-101 to 28-2-103 | 7 (deed) | A document or deed in the shorter time period noted. |
| Texas | Tex. Civ. Prac. & Rem. Code Ann. § 16.021 and following | 10, 5 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| Utah | Utah Code Ann. § § 78B-2-208 to 78B-2-214 | 7 (taxes) | Paid taxes on the property in this state during this time period. |
| Vermont | Vt. Stat. Ann. tit. 12, § 501 | 15 | |
| Virginia | Va. Code Ann. § 8.01-236 | 15 | |
| Washington | Wash. Rev. Code Ann. § § 4.16.020, 7.28.050 | 10, 7 (deed or taxes) | A document or deed, or paid taxes on the property during this time period. |
| West Virginia | W. Va. Code § 55-2-1 | 10 | |
| Wisconsin | Wis. Stat. Ann. § § 893.25 to 893.27 | 20, 10 (deed), 7 (deed, taxes) | A document or deed and paid taxes on the property during the shorter time period above. |
| Wyoming | Wyo. Stat. Ann. § 1-3-103 | 10 |
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Step 4: Reach out
Once you’ve verified the home is in default, of suitable condition and location. It’s time to make the homeowner a formal offer by letter or phone call.
If the home is already vacated or you were not able to contact the homeowner in person; Our Super Search feature can provide a comprehensive report of known routes of communication at a fair cost per lookup. Click on the “Super Search” widget found on each listing to get started.
Step 5: Learn the values
Review the homeowner’s loan details and perform a title search to get an idea how much money you’ll be profiting.
An insured title search from Fidelity National or Chicago Title is recommended before you pay money for the property, or for research purposes you can do it yourself usually through the website of your County Recorder’s Office. Simply look up the history of liens, judgments and back-taxes for the property and owner in question to know which encumbrances may effect the equity.
Step 6: Do some math
Calculate the costs you will encounter as a buyer (loan balance, liens) taxes & insurance are usually included in the mortgage payment but if it is a high value property you’ll want to get a new insurance policy in your name. Subtract your costs from the estimated value of the property. This is how you determine your equity when you decide to resell the home or refinance the remaining balance.
Step 7: Walk through
If the owner is willing, take a tour of the property. If you are interested in Reselling or becoming a landlord, determine how much you’d need to spend on repairs and subtract that amount from your equity profit.
Step 8: Negotiate
The bank will usually discount the default amount (back payments). You can potentially convince the homeowner to clear his own default (Zero Down Method) or pay you monthly a portion of the mortgage out of pocket to compensate your expected profits. Be creative. For instance, an owner may more flexible if you allow them to stay in the property for 30 to 45 days while they find a new place to live.
Step 9: Put it in writing
Once a deal has been reached, complete the purchase agreement, quit-claim or grant deed depending on which your County Recorder will accept. You may utilize an attorney for assistance. Clear the default amount as negotiated with the bank. Report the change of title to the County Recorder, you are now the owner of the property.
It is not necessary to inform the bank that you are purchasing the property. As long as your monthly payments are on time you are at virtually no risk of the due on sale clause. Begin building your credit and then inform the lender about the sale at a later date to benefit from “vesting in title” when you refinance.
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Step 10: Be persistent
Not all homeowners will be ready to vacate their pre-foreclosure home upon first contact — and it happens occasionally that people get back on their feet or find a better offer. Establishing a route of communication that extends closer to the end of their bank’s ‘Grace Period’ is crucial for success. You are looking to get a great deal on a property after all, and the flexibility must extend both ways.
Need more Help?
See our FAQ Page, get in touch with our Live Chat Support, give us a call at 844-410-2663 during normal business hours, or shoot us an email to support@finders.house.