5. Head straight to a bank’s website
Banks, especially larger banks like Bank of America, will have a dedicated portion of their website dedicated to the REO properties they are trying to sell. They also work with listing agents to list the property, and these agents can help walk you through the process if you find one you want to buy.
6. Search government foreclosure sites
The U.S. Department of the Treasury has a platform for properties that have been seized and forfeited due to violation of federal laws. The proceeds for any sales go to the U.S. Treasury Asset Forfeiture Fund, which helps support law enforcement efforts as well as providing restitution to crime victims.
The U.S. Marshals Asset Forfeiture Program is another place to search for REO properties. This program also helps with compensating and restoring property to victims and may offer you a deal.
If a bank fails, the Federal Deposit Insurance Corporation (FDIC) will often take control of the bank’s assets, either selling them to another bank or selling them to someone else, like you. On the FDIC’s Real Estate and Property Marketplace, it sells real estate retained from failed banks.
Apparently, it’s possible to buy a home from the U.S. Department of Housing and Urban Development for one dollar. This may not be available to people as an investment property, but for resident-homebuyers, those with low to moderate incomes can purchase a qualified HUD-owned home. HUDHomes also lists HUD-owned homes for sale.
Other federal agencies where you can find single-family homes include the Internal Revenue Service (IRS), the U.S. General Services Administration’s Real Property Utilization & Disposal, and the United States Department of Agriculture (USDA). Some of these sites also include multi-family housing, land, and commercial real estate.
7. Get to know Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are government-sponsored enterprises that buy loans from banks, sometimes holding onto them, and sometimes repackaging them in mortgage securities and selling those on the secondary market.
When a home loan that Fannie or Freddie is holding goes into foreclosure, and the house doesn’t sell at a foreclosure auction, those Fannie Mae- and Freddie Mac-owned homes are then sold through the sites HomePath and HomeSteps respectively.
8. Pay for a specialty site subscription
Sites like RealtyTrac and RealtyBid provide a database of foreclosure properties. You can use these sites to find properties in foreclosure and then track them to see whether they sell or later become REO homes.
9. Search public records and check for sheriff’s sales
Your local sheriff’s website should have a space that lists upcoming sheriff’s sales, which can include foreclosure properties that could become REO properties if they don’t sell. These auctions can be a great way to track distressed properties before they officially become bank-owned.
Checking public records at your county clerk’s office can also provide insight into foreclosure filings and upcoming sales. Some states require public notice of foreclosure auctions, so local newspapers or government websites may have useful listings. Staying informed about these sales can give you a head start on identifying potential REO properties in your area.
