To find foreclosures in your area, start with the federal agency portals that list repossessed homes, then work outward to county court filings, local legal notices, individual bank REO pages, and third-party aggregator sites. Each source catches properties at a different point in the foreclosure timeline, so the one you choose shapes how you buy, what you can inspect, and how much risk you take on.
A quick way to think about it: government agency portals and bank REO pages show homes that have already been repossessed and are ready for a fairly normal sale. County records and legal notices show homes at the very start of the process, months before any auction. Aggregator sites pull from all of the above. The rest of this article walks each source in that order, then covers what to check before you buy.
Federal Agency Portals
Several federal agencies sell homes they took back after borrowers defaulted on government-backed loans. Sales follow a more standardized process than a courthouse auction, and most of these properties can be bought with a traditional mortgage.
HUD Homes
The Department of Housing and Urban Development sells single-family and multifamily homes that were previously financed with FHA-insured mortgages.1U.S. Department of Housing and Urban Development (HUD). Homes for Sale The listings live on a single national portal, HUD Homestore (hudhomestore.gov), searchable by state, county, or zip code. Sales run through local real estate brokers, and HUD sells as-is with no repairs and no warranties.2eCFR. 24 CFR Part 291 – Disposition of HUD-Acquired and -Owned Single Family Property
If you plan to live in the home, HUD gives you a head start. Properties eligible for FHA financing are reserved for owner-occupants for up to 30 days before investors can bid.3HUD.gov. HUD Expands Exclusive Listing Period for Its Real Estate Owned Properties Homes offered without insured mortgages give first priority to government entities and nonprofits, then to other owner-occupants.2eCFR. 24 CFR Part 291 – Disposition of HUD-Acquired and -Owned Single Family Property
VA-Acquired Homes
The Department of Veterans Affairs lists repossessed properties through a contracted property management company, and you don’t need to be a veteran to buy one. The homes appear on the local Multiple Listing Service, and the VA directs interested buyers to contact a local broker to view them.4Department of Veterans Affairs. Property Management Service Contract – VA Home Loans
USDA Properties
USDA Rural Development and the USDA Farm Service Agency sell foreclosed homes through a dedicated portal at properties.sc.egov.usda.gov.5USDA Resales. REO and Foreclosure Properties – USDA Resales Inventory concentrates in rural areas and smaller communities, so the list is shorter, but competition is often lower too.
Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac hold large portfolios of repossessed homes. Fannie Mae lists on HomePath (homepath.fanniemae.com); Freddie Mac uses HomeSteps (homesteps.com).6Freddie Mac. Find a Home – HomeSteps.com Both let you filter by location and price and route sales through real estate agents.
HomePath adds a few financing perks worth knowing about. On a principal residence with more than 90% loan-to-value, Fannie Mae allows interested-party contributions up to 6% of the sales price, above the standard limit. Buyers who finance a HomePath purchase as a primary residence and get an appraisal also receive a $500 appraisal credit.7Fannie Mae. Loans Secured by HomePath Properties
County Records and Legal Notices
Agency portals show homes that have already been repossessed. Public records let you find properties much earlier, sometimes months before an auction.
County Recorder and Court Filings
When a lender starts foreclosure, documents get filed with the county. Search the county recorder’s office or the clerk of the court for a lis pendens (which flags that a lawsuit affecting the property’s title is pending) and a notice of default (filed when the borrower has fallen behind on payments). Records are usually searchable by property address, legal description, or owner name. Many counties now offer online search portals, though quality varies.
Finding a property at this stage gives you time to research it, look up its tax history, check for other liens, and sometimes approach the owner directly with an offer. The catch is that pre-foreclosure sales aren’t guaranteed to happen. The owner still holds title, the lender hasn’t taken possession, and the borrower may catch up on payments or work out a modification before anything reaches sale.
Newspaper Legal Notices
Foreclosure law requires public notice before an auction. For federally held mortgages, the notice must be published once a week for three consecutive weeks in a newspaper of general circulation in the county where the property sits, and filed at least 21 days before the sale.8Office of the Law Revision Counsel. 12 USC 3758 – Service of Notice of Foreclosure Sale State rules follow similar patterns. The notice includes the property address, legal description, and scheduled sale date. Many newspapers now publish their legal sections online, so scanning them takes minutes rather than a trip to a newsstand.
Bank-Owned (REO) Listings
When a property runs through foreclosure and no one buys it at auction, the lender ends up owning it. The industry calls these Real Estate Owned, or REO, properties. Large national banks run REO departments that maintain the properties, pay taxes, and manage sales. Most major lenders publish their current REO inventory on their websites, and the same homes often show up on the local MLS.
Smaller banks and credit unions handle the same process with less inventory. For these, call the asset management or special assets department directly. They sometimes know about properties about to hit the market that haven’t been listed yet. Pricing is usually based on an appraisal or a broker price opinion, and lenders are motivated sellers: a non-performing property costs them money every month in taxes, insurance, and upkeep, so there’s typically room to negotiate.
Two things to know before you make an offer. REO properties are almost always sold as-is, and the bank has no firsthand knowledge of the condition. Some banks clear title issues and remove former occupants before listing; others don’t. If the property is still occupied at closing, federal law requires at least 90 days’ notice to bona fide tenants in foreclosed properties before they can be required to leave, and any eviction may fall to you.
Foreclosure Aggregator Websites
Third-party sites pull foreclosure data from court records, agencies, and bank listings into one searchable platform. You can filter by zip code, price, property type, and stage (pre-foreclosure, auction, or bank-owned). Many offer map views showing foreclosure density by neighborhood, along with sale history and tax assessment data.
Some are free; others charge a monthly subscription that may add owner contact information or estimated equity figures. Free tiers are usually enough to identify properties worth investigating further. Paid tiers make more sense if you’re tracking dozens of properties across multiple counties at once.
Before you pay for a subscription, check whether your county already offers free online access to foreclosure filings. Many do, and the aggregator is charging you for legwork you could do yourself in a browser tab.
Watch for Foreclosure Scams
The Consumer Financial Protection Bureau flags a few clear warning signs. Federal law bars mortgage assistance and foreclosure relief companies from collecting fees upfront; they can charge only after they deliver a deal the client accepts.9Consumer Financial Protection Bureau. Consumer Advisory – Don’t Fall for a Foreclosure Relief Scam or Bogus Legal Help Pressure to act immediately, guaranteed outcomes, requests to sign documents you don’t understand, and instructions to send payments to anyone other than your lender are all red flags. Real government officials never ask for payment to help you with housing programs.10Consumer Financial Protection Bureau. How to Spot and Avoid Foreclosure Relief Scams Any site claiming exclusive access to “secret” government foreclosure lists is running a scam. Every legitimate government foreclosure listing is public and free through the agency portals covered above.
What to Check Before You Buy
Finding the listing is the easy part. Foreclosed properties carry risks that don’t exist in a normal home purchase, and skipping the homework can wipe out any discount you thought you were getting.
Title Search and Title Insurance
A title search is the single most important step. Foreclosures can leave a messy ownership trail. The search reviews public records for unpaid liens, broken chains of ownership, filing errors, and competing claims from heirs or prior owners. Common problems include mechanic’s liens from unpaid contractors, judgment liens from lawsuits, and unpaid property taxes or special assessments that survive foreclosure and become the new owner’s responsibility.
Title insurance protects you if a defect surfaces after closing. On REO purchases through a broker, you can usually buy title insurance at closing. At courthouse auctions, title insurance is much harder to arrange because the purchase moves too fast, so run your own title search before the sale date and accept that you’re carrying more risk.
Which Lien Is Being Foreclosed
When a senior lender (the first mortgage holder) forecloses, the sale generally wipes out junior liens like second mortgages and home equity lines. Some obligations still survive, including property tax liens and certain municipal assessments.
The reverse matters even more. If a junior lienholder forecloses, say the holder of a second mortgage, the senior lien stays in place. You’d be buying the property subject to the first mortgage, meaning you’d owe that balance on top of your purchase price. This is where inexperienced auction buyers get burned. Confirm which lien is being foreclosed before you bid.
Redemption Periods
If a federal tax lien is attached to a foreclosed property, the IRS has the right to redeem it after the sale. The redemption period is 120 calendar days from the date of sale, or the period allowed under state law, whichever is longer. To redeem, the government pays the purchaser the amount paid at sale plus 6% annual interest, along with certain post-sale expenses.11Internal Revenue Service. Redemptions Many states also grant the former homeowner a statutory redemption period ranging from a few months to over a year. During that window you technically own the property, but the former owner can reclaim it by paying off the debt, which makes the home essentially unmarketable until the period expires.
Condition
Nearly every foreclosure sale is as-is. Structural damage, mold, stripped plumbing and wiring, and pest infestations are common in homes that sat vacant. With REO purchases, you can usually get a professional inspection before closing. At courthouse auctions, you often can’t set foot inside before bidding. Drive by the property, pull permit history, and budget generously. A foreclosure priced 30% below market stops being a bargain if it needs $80,000 of work you didn’t plan for.
How You’ll Pay
The financing you can use depends entirely on where you buy.
Courthouse Auctions
Auctions require cash or guaranteed funds. Personal checks aren’t accepted. Expect to bring a cashier’s check or certified check, and expect a deposit at the time of bidding, commonly 5% to 20% of your bid. The remaining balance is typically due within one to 30 days depending on the jurisdiction, and some counties want full payment the same business day. Traditional mortgage financing isn’t an option; the money has to be lined up before you arrive.
REO and Government Agency Purchases
Buying from a bank or federal agency looks a lot like a conventional home purchase. You can typically use standard mortgage financing, FHA loans, VA loans, or conventional loans depending on the property’s condition and the seller’s requirements. HUD homes can be bought with FHA-insured financing, and HomePath allows higher interested-party contributions to help cover closing costs on primary residences.7Fannie Mae. Loans Secured by HomePath Properties Closings run on the usual 30 to 45 day timeline, with time for inspections and title insurance before the deal is final.