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Every serious real estate investor should know how to find foreclosure and pre-foreclosure listings. If you don’t know how foreclosure and pre-foreclosure work, you could be missing out on some potentially great bargains on investment property.

The first step in finding foreclosure and pre-foreclosure listings is knowing where to look. Use this guide to discover the best places to find foreclosures and pre-foreclosures so you can scale your real estate business by purchasing properties below market value.

1. Public Records

In various stages of the foreclosure process, notices are recorded with the county clerk at your county recorder’s office. This information is public record, and anyone can access it.

Just visit your county recorder’s office, where you can search for:

• Notice of default: A notice of default is a letter sent by a creditor informing a property owner they are late on payments. If no action is taken, the property can be sold.
• Lis pendens: A lis pendens is a note issued to a homeowner to let them know that a legal action will take place against them that affects the title to their property. Interested parties can search public records to discover any lis pendens that indicate a home is in the pre-foreclosure stage.
• Notice of sale: A notice of sale informs a property owner that their bank or lender intends to sell their property because they are in default. The note states the time and location of the sale.

The best part of searching public records yourself is that it’s free. The downside to this approach is that it can be time consuming and tedious to find exactly what you’re looking for. However, you’re likely to find newly posted properties that haven’t yet reached online foreclosure data providers.

Public records won’t have pictures of the property, but you can get the address. When you know where the property is located, you can drive by and take a look at it yourself. You won’t be able to see the interior of the property unless no one is living there, in which case you may be able to at least peek in the windows.

2. Online Directories

Performing online searches is quite a bit easier than going to the county clerk or recorder’s office, but you certainly won’t be the first to find out about a pending bank foreclosure. Typically, you’ll need to use an online listing service, where you can either participate in a free trial or pay a fee to view listings. Try checking out the free trial offers so you can see which provider best suits your needs.

There are both national and regional foreclosure listing services that provide notice of default, notice of trustee sale, and lis pendens data on properties in the foreclosure process. Many of these companies will provide information about the property, including the name of the owner, address, loan amount owed, and additional loans outstanding. A select few will also provide contact phone numbers.

3. Local Newspapers

Part of the requirement for filing a foreclosure is that the notice of sale be published in the local newspaper. If you search local papers and business journals, you can easily find notices for trustee sales in the public notice section.

These notices inform the public about upcoming property auctions and list details such as when and where the sale will take place. Today, many local newspapers are available for free or for a small fee online, so you don’t have to purchase the physical newspaper.

4. Asset Managers

You can also find lists of bank-owned properties, or REOs, through asset management companies. These companies help lenders dispose of assets, including properties that have been foreclosed. Many of these asset management companies will list the REO properties they represent on their websites.

5. Government Agencies

Government agencies can also foreclose on properties. Departments like Housing and Urban Development (HUD), Veterans Affairs, and the IRS are just a few of the resources you can use to find foreclosed properties.

Often, these agencies also list upcoming, or pre-foreclosure, properties that are in the process of being foreclosed. You can find out about auctions for single-family homes, multifamily properties, and commercial real estate through government websites. There is no cost to view these listings, but the information can be inaccurate, so it’s important to do your own research.

6. Real Estate Agents

Many real estate investors work with a real estate agent to find foreclosure listings. Because real estate agents work with many homeowners and investors, they often have access to information about pre-foreclosures before the public. A real estate agent is also likely to understand foreclosure proceedings and foreclosure laws, providing invaluable information. Some agents even specialize in foreclosure properties.

In some cases, banks may prefer to facilitate short sales if they believe it will result in a higher selling price than foreclosure. A short sale happens when a homeowner is at risk of default due to financial distress and the bank wants to recover as much money as possible.

Often, short-sale properties are listed below market value, but this isn't always the case. You're more likely to find short-sale listings on the MLS or through real estate agents because these aren't REO properties.

7. Bank Websites

Bank websites are another good place to find foreclosure listings. Banks foreclose on properties when owners fail to pay their mortgages.

Although banks prefer a homeowner to avoid foreclosure, lenders will take possession of and then sell a property if the owner falls too far behind in making payments. Each bank has a different website, so you may have to search for foreclosures using the search function on these sites.

8. Real Estate Attorneys

People hire real estate attorneys for a variety of reasons, including to help them get rid of properties they can’t afford or don’t want. This can make them a great resource for finding pre-foreclosure listings.

These attorneys represent clients who want to avoid foreclosure. So investors who want to sign a contract on a property before it even hits the market can benefit from networking with real estate attorneys. They may have access to leads who are interested in selling their property at a low price just to get rid of it.

9. Auction Houses

You may be able to find pre-foreclosure listings through auction houses. Because many foreclosure homes are sold through an auction company, these companies may have access to pre-foreclosure listings.

Once an auction is scheduled for a home, it's past the pre-foreclosure stage. However, auction houses may have advanced knowledge of homes that are in the process of being foreclosed upon, which could help you purchase an investment property at a low price before it becomes an REO.

10. Neighborhood Drive-by

Doing a neighborhood drive-by to look for foreclosures may seem like a dated approach, considering how easy it is to search online. But driving through neighborhoods is something to consider.

As you drive through an area, look for notices posted on doors that indicate a home is in pre-foreclosure or foreclosure. A home at risk of foreclosure might also have a for sale sign in the yard that indicates the homeowner is distressed.

Additionally, you may see a home that appears vacant or in disrepair. These homes may have tax liens or other issues that could lead to foreclosure in the near future. Pay the owner a visit to see if they’ll sell the home before foreclosure happens.

11. Real Estate Wholesalers

A real estate wholesaler is someone who facilitates deals between homeowners and investors or buyers. They typically look for distressed properties that need to be sold quickly to avoid foreclosure. Sometimes these homes are already in pre-foreclosure.

Real estate wholesalers buy contracts and then sell them to people who are interested in buying a property, usually at a discount. Their services can help stop foreclosures from happening, and you can still get a great deal on an at-risk property.

Final Thoughts

While the number of foreclosures today is nowhere near what it was during the 2008 housing crisis, there are still plenty of opportunities for savvy investors to find great deals when they know where to find pre-foreclosure listings, as well as information about REO properties and homes that are in foreclosure. Regardless of your real estate investing strategy, pre-foreclosure properties can be an excellent way to purchase real estate at a low price.

This post originally appeared on the BiggerPockets blog.

The BLS released the August jobs report on Friday morning. You can read the full details here (https://www.bls.gov/news.release/pdf/empsit.pdf), but let me summarize what it says and why you should care about this specific release.

1. The economy added 142k jobs last month. That's up from July's 114k (which was changed to 89k). Analysts predicted about 160k new jobs, so it's still slightly off compared to experts' best guesses. But they really were just guesses. Bottom line here, it's rebounded nicely since July.

2. The unemployment rate dropped from 4.3% to 4.2%. More jobs added would, in theory, mean less unemployment, so really nothing major to take away from this.

So why should you care?

Jerome Powell announced a few weeks ago that the time has come for the Fed to cut rates, and we are expecting to hear that announcement in the next Fed meeting on September 17-18. Generally, this news is released on the last day, so go ahead and pencil in the early afternoon on Wednesday, 9/18. 

The jobs report likely won't impact whether rate cuts will come, but could impact by HOW MUCH rates will be cut. If the numbers were dismal again like July's report, more alarm bells would be going off about a recession. To me, this would signify a larger rate cut to encourage more spending and economic growth. However, since new job numbers are back up (albeit not as high as they were earlier in the year), this points more towards a soft landing than recession. 

We could sit here and debate recession vs. soft landing all day, and please, go ahead and leave your opinion in the comments. But to me, this report indicates we won't see a larger-than-expected rate cut. If I had to guess, I'd say we're going to drop from 5.5% to 5.25% in two weeks. 

But that's just my semi-educated guess. There's also another CPI report being released next week, and depending on what that says, my prediction could be thrown out the window.

I agree with you. It will take time for those millions of new housing units to come on the market. In the short term, this will just create more demand for entry-level properties and cause prices to increase thanks to the competition and multiple offers that will surely come (especially if rates continue to drop).

I received an $8k first-time homebuyer credit when I purchased my first home in 2009. The difference there was I got that when I filed my taxes. I still had to come up with the down payment on my own. I worry that providing the money upfront (if I'm understanding the details correctly) will create potential problems down the road if people use the extra money to purchase homes they can't afford. You'd have to assume there will be some sort of eligibility criteria here, but who knows?

Vice President Harris is expected to announce her plans at a rally on Friday. According to Forbes, it will focus on creating more affordable housing. Some of the finer points that I can see are $25,000 in down payment assistance for first-time homebuyers, 3 million new housing units within the next four years, tax credits for developers who build starter homes, investing $40 million in an innovation fund to tackle the housing crisis, and expanding a tax credit for housing developers who build affordable housing rental units.

Forbes also says she wants Congress to crack down on "predatory investors" who buy up rental homes and collude with each other to raise rental prices.

Just sharing this because there's obvious impacts on the housing market if this all takes effect.

This is basically just a summary of the Forbes article, you can read it in full here: https://www.forbes.com/sites/alisondurkee/2024/08/16/kamala-...

I have lived in Southwest Atlanta (Oakland City area) for the past 5 years, and I can tell you firsthand how the overall area is turning around and seeing much more interest today from both investors and homeowners. 

While most of the steady jobs are north of the city, as previous comments said, there are a few big HQs near the airport (Porsche, Delta, etc.) and several movie studios nearby. I'll echo what everyone else has said about doing your research. Chances are you'll be able to find an attractive deal on a purchase price, but depending on the neighborhood and your overall strategy and goal, you could have mixed results. I have seen a lot of flips in my neighborhood and the surrounding communities, but some are taking a while to sell as many are priced significantly higher than the median home values on blocks that just aren't there yet. In my opinion, LTR and MTR make the most sense in the area, but I'm more focused on buy and hold strategies myself.

My fiancee and I are in the process of prepping her condo to rent. This is our first rental, so we are very much rookies. The HVAC (heat pump and furnace) are both very old and will likely won't last through the upcoming summer. The condo is in Atlanta, so the A/C will get a lot of use once it starts warming up. Our options are buying a new HVAC system, which will run us probably $5-10k based on our research, or we could go with a "rental" HVAC from a local company that includes all repairs, maintenance, filter replacements, etc. for a monthly fee of about $100 over 8 years.

I figure we could offset the monthly cost by increasing our asking rent and save our reserves for something else that may come up, but I could also see this limiting our cash flow potential for the next almost decade.

Has anyone run into a similar scenario? Any suggestions?

We are always looking for good contributors to the BiggerPockets blog! If any members are interested in writing articles, please get in touch with me and I will share more information about our guidelines and publishing process.

Awesome job!