When you contact homeowners during the foreclosure process you may find that some of the people actually want to save their houses. The best people to contact are those that have already received the intent to sell notice and those that have their house on the market for sale. You may see that the house is already listed as a short sale. This is a good way to purchase a house because it means that not only is the house listed at 80% of what the person owes on the mortgage but the bank will be willing to take off an additional 10% to 20%. You might be able to take over the person's payments on the mortgage also.

An auction is another way that you can purchase foreclosures to turn into rental properties. The foreclosure auctions usually take place on the weekends or a weekday at the local courthouse. Some states will hold the auctions at the house that is in foreclosure. The process is not the same in every state so you should research the process in the state of the house that you are looking to purchase if you would like to buy a house at an auction.

When houses don't sell at the auctions they move into the possession of a bank. If you want to invest in rental properties then you can talk to some of the banks and see if they have single-family homes that you can purchase. Banks are very happy to get rid of foreclosures and they will work with you to find the houses that you are looking for. Always negotiate with the bank so you can come to the lowest price possible for purchase.

There are many ways that you can purchase homes as investment rental properties. These ways include directly from the borrowers that are in the foreclosure process, the banks, and by attending an auction.