How to Find a Foreclosure

Want to buy a foreclosure but don’t know where to start? Seasoned investors know where to find foreclosure listings, and there are plenty of unscrupulous companies out there that have built ad-based, subscription websites to pull you in. Just beware: Many of these sites are filled with listings that are often inaccurate or outdated.

Below are eight ways to find foreclosure listings:

1. Foreclosure real estate agent

Find a real estate agent who specializes in foreclosed properties. Search for agents in your area who have foreclosure experience. Your agent will be able to guide you to foreclosure property listings on the Multiple Listing Service (MLS) — a database to which consumers do not have direct access.

2. Check Zillow

Of course, you can also find pre-foreclosures and bank-owned properties for free through Zillow. Go to Zillow.com, enter your search area and click 'Listing Type.' Then select 'Foreclosures' in the 'For Sale' section to view what's available now. For what may become available in the future, select 'Foreclosed' or 'Pre-Foreclosure' in the 'Potential Listings' section.

3. Newspaper

A requirement for filing a foreclosure is that the Notice of Sale be published in the local newspaper of record. Check the legal notices in your local paper to find real auction houses operating in your area. Once you’ve identified several legitimate companies, go online to check their websites for listings and upcoming auctions.

4. Bank websites

Some banks — especially larger ones — list inventory of foreclosed properties on their websites. The sites are generally searchable by state and city and include prices, photos, descriptions and agent contact information for each listing.

Some lenders hire asset management companies to handle their foreclosure listings, so it's worthwhile to check those websites as well.

5. Government agencies

Some government agencies require that offers be submitted through a real estate agent, while others will accept them directly from consumers. Check websites for online foreclosure listings and purchase procedures from agencies including: Fannie Mae, the Federal Housing Administration, Treasury Department and Small Business Administration.

6. Public records

Throughout the foreclosure process, various legal notices must be filed in your County Recorder's Office. This information is public record and available to anyone. Just visit your county's office and you can search for a Notice of Default (NOD), lis pendens or Notice of Sale. Two benefits to searching public records? It's free, and you may find newly posted properties that haven't yet reached many of the online foreclosure data providers.

7. Do a drive-by

Tour the neighborhoods in which you’d like to buy and check for real estate signs; you’ll likely see some marked “Foreclosure” or “Bank Repo.” Call the agents whose names are on the signs and ask about other foreclosure listings that may be coming on the market — you just may get a jump on other buyers by asking about new foreclosures not yet listed.

8. Auction houses

Auction companies often hold huge foreclosure auctions, sometimes selling hundreds of properties in a single day. Experts disagree about whether auctions are great places to buy foreclosures; sometimes the excitement of bidding falsely escalates prices, and there are risks to buying properties “as is.” But it is possible to find deals — as long as you do your homework.

9. Fee-based sites

In addition, you can also scan listings on websites that charge a fee — usually a monthly subscription.