How to Find Foreclosures for Sale

Home flippers and ambitious homebuyers are often on the hunt for foreclosures, but it turns out that these types of homes can be a bit trickier to find than you might think. Finding foreclosures for sale requires a bit of research, a bit of action, and a bit of luck, all of which must come together at the same time (and preferably, with financing already in order).

Below, we’ll go over different ways to find foreclosures for sale, plus a few tips for making sure you get the best deal possible on your fixer upper.

Finding Foreclosures for Sale

There are a few different ways to go about finding foreclosed homes for sale. We recommend taking advantage of as many of them as you can so that if a great foreclosure does pop up it doesn’t slip out of your fingers.

Real Estate listing sites

Work with a local agent

Talk to brokerage firms

Public records

Notice of Default (NoD) – A Notice of Default is a document that states a mortgage borrower has delinquent payments. It’s one of the first documents filed during the foreclosure process.
Notice of Sale – A Notice of Sale is a document that states a home will be put up for sale at auction.
Lis pendens – A lis pendens is a document that states there is some sort of legal action taking place on a piece of real estate property.
One or all of these documents will be filed when a foreclosure hits the market, and usually before any additional information becomes available.

Paid listing sites

Bank websites

Newspapers

Tips for Buying a Foreclosed Home

Now that you know how to find foreclosures for sale, let’s cover some tips you’ll want to keep in mind as you search.

Get a mortgage pre-approval. If you intend on pursuing conventional financing for your foreclosure then you should get the paperwork in order as soon as possible—ideally before you get really serious about searching. A mortgage pre-approval gives you a major advantage in the foreclosure market, since banks are usually trying to offload these types of properties as soon as possible.
Cast a wide net. Remember, the more avenues you search the better off you’ll be. You’re almost never going to find all available foreclosures for sale listed through one single resource, so it’s crucial that you diversify you search and maximize your opportunity potential.
Have some deal breakers in mind. Price is obviously a very important consideration when you’re shopping foreclosures for sale, but it’s not the only one. There are other costs and financial risks that you need to accommodate when buying a foreclosure, such as the ease and costs of necessary repairs. After all, a $50,000 house isn’t such a good deal if it’s going to require $20,000 in foundation repairs before you can even get started on your renovation.
Always go see foreclosures in person. It is absolutely critical that you check out foreclosures for sale in person before you make an offer or head to the auction house. A majority of foreclosure are sold “as is,” which means that you’re not going to be able to ask for concessions or incentives along with your offer. Buying a foreclosure sight unseen could mean taking on more than you were anticipating, especially when it comes to repairs.

Foreclosure vs. Pre-Foreclosure

As you search for foreclosures for sale you’ll likely come across the term “pre-foreclosure.” A pre-foreclosure is a property where the homeowner has missed payments on their mortgage and is at risk of a full foreclosure.

Key to note here is that pre-foreclosure homes are not for sale—but they may be soon. You could try reaching out to the owner and making a reasonable offer on their home to see if they’re willing to sell and avoid the foreclosure process. You can also keep tabs on pre-foreclosures that you’re interested in so that you’ll be one of the first to know if they do in fact end up on the foreclosure market.

To find pre-foreclosure homes for sale, look for those Notices of Default at the County Recorder’s office. You can also find these types of listings on free and paid listing sites.

Need some more advice about buying a foreclosure? Check out our five factors to consider before buying a foreclosed home.