You can find foreclosures through your real estate agent, websites of bank-owned properties, and government agencies. Popular home sites like Zillow will also list some foreclosed homes. If you’re looking to buy a foreclosure or government-seized house, keep reading.
Foreclosed Homes
Many homes that were originally short sales end up as foreclosures, which eventually are deeded to a bank. Buyers may refuse to purchase a short-sale home due to some of the following situations:
Sellers stripped the foreclosure home’s assets and/or vandalized the propertyThe bank refused to accept less than its present mortgage balanceThere is a hassle-free purchase the buyer can pursue insteadThe location of the home and/or neighborhood was undesirableThe listing was overpriced at its mortgaged amountThe seller did not qualify for a short sale
Where To Find Foreclosed Homes
If you’re looking to buy a foreclosed home, start by searching the internet. Websites like Zillow, Equator.com, HomePath by Fannie Mae, and Foreclosure.com may be good places to start. They will likely not have all of the foreclosed homes that you’re looking for, so consider the other options below to find a good foreclosure for your next house.
Find Foreclosures With Real Estate Agents
Not every foreclosure is a bargain, and some can morph into unexpected nightmares. There are drawbacks to buying foreclosures. Still, some foreclosed homes are diamonds waiting to be polished. Inexperienced foreclosure buyers may want to hire a real estate agent for guidance and assistance. You also can ask your buyer’s agent to search for real estate owned foreclosures, known as “REOs.” If you see a listing agent’s name over and over, pull up their profile and look at their listings. You will probably find a ton of foreclosures at your fingertips.
Real Estate Signs
Driving through neighborhoods where you want to buy is another great way to find foreclosures. The signs might indicate foreclosure, bank-owned properties, or bank repossession. Call the agent whose name is on the sign, and ask about other foreclosure listings that may be coming on the market.
Major Bank Websites
Many banks maintain online lists of foreclosed properties, but not every bank will sell to individual buyers. Large lenders may dispose of REOs by bundling them into a package to sell at a discount to investors. National lenders that maintain websites listing bank-owned properties include Bank of America, CitiBank, and Wells Fargo.
Government Agencies and Other Options for Finding Foreclosures
Some government agencies require you to retain the services of a real estate broker to make an offer to purchase a foreclosed home. Others will let you submit offers on your own. Some government agencies that list foreclosures include:
U.S. Department of Housing and Urban Development (HUD) Federal National Mortgage Association’s (Fannie Mae) HomePath website Department of the Treasury, which lists homes seized by the Internal Revenue Service FDIC sells real estate that was owned by failed banks
Private-sector sources also are available to find foreclosure homes.
Asset Management Companies
Some lenders hire asset management companies to handle foreclosures on their behalf. Wells Fargo uses Premiere Asset Services. Keystone Asset Management is a national agency that deals with defaults.
Auction Houses
Auction companies hold huge auctions, sometimes selling as many as 100 homes or more in a single day. While many experts agree that auction companies often get higher prices due to the auction frenzy created among bidders, sometimes you can find a gem in their inventories. Popular auction houses include:
Auction.com J. P. King United Country Auction Services Williams & Williams Bid4Assets
Internet Foreclosure Companies
Web-based foreclosure companies charge a fee for providing you with a list of foreclosure properties because it takes time, effort, and expertise to locate and assemble accurate national foreclosure lists. You may find that it’s worthwhile to let companies such as Foreclosure.com and RealtyTrac search for you.
Courthouse Steps Auctions
You might also want to try your hand at bidding for a foreclosure on the courthouse steps. Beware that there will be many professional buyers there with you. The downside is that you generally are required to pay cash and buy the property sight unseen, and you could be assuming liens or judgments and could be forced to pay delinquent property taxes.
