Finding a home in the pre-foreclosure process provides you with the best opportunity for profits in real estate investing. When you invest in pre-foreclosures, you can usually negotiate directly with the owner, who is motivated to sell for a bargain price. The best option is to find foreclosure properties before they go to public auction.

Finding pre-foreclosures is not difficult, but it does take action on your part. One fact working in your favor is that mortgage lenders are usually required by law to give public notice of default. Public notices are typically filed at the county courthouse and, in most cases, are published in the local newspaper.

Public notices of default provide an excellent starting point in your search for pre-foreclosures. You can find most of the information you need, including the lender's name, the homeowner's name, the amount owed and the interest rate. However, most public notices only have a legal description of the property and do not include a street address.

Starting with the information you have from the public notice, you can find the information you need at the county tax assessor's office. County tax rolls are public information and anyone is allowed to review them. Take the homeowner's name from the public notice and find it on the tax roll. Once you find their name, you can match up the property description with a street address.

Foreclosure services that provide you with a list of pre-foreclosure properties can be hired for a monthly fee. Some counties are making their foreclosure information available on the Internet.

In addition to the public legal notices, you may find leads to pre-foreclosures in the real estate ads. Look for advertisements that suggest a very motivated or even desperate seller. When you call for more information, you may find that foreclosure is imminent.

Finding and making an offer for federal foreclosures (FHA and VA loans) is more difficult but may be more profitable in the end. You'll need to build a business relationship with a federally approved real estate broker.

Another excellent way to find pre-foreclosures is to place some classified ads of your own. Your ads should be clear and direct, with the word "foreclosure" featured prominently. Individuals who are looking for a way out of the foreclosure process will welcome the chance to consider your offer.

Investing in pre-foreclosures will give you the highest profit potential with the most financing options. All the information you need to get started is printed in the paper every day.