How to Find a Foreclosed House to Buy

Foreclosed homes can be a great investment for the home buyer. They make affordable new homes for the buyer and generate income as rental properties. Finding a foreclosed home for sale can be quite easy with some research into nearby properties.

Instructions

1. Browse the classified section of the local newspaper. The sheriff sale listings will be located here, with the address of the property, bank, appraised value and the sale date. Sheriff auctions can be the cheapest way to purchase a foreclosed home.

2. For a foreclosed home that is not being sold at auction, look to the web. Browsing the Multi Listing Service (MLS) website and Realtor.com for your local area will bring you several leads, many of which are being offered at short sales to avoid a foreclosure. A short sale home can be bought for a fraction of the cost.

3. Search the MLS site for Realtor-posted homes that are owned by the bank, too. These homes have been bought back by the lender during a sheriff auction or the original owner was offered a deed in lieu of foreclosure. This happens when the lender accepts the house back as payment on the loan.

4. Meet with a Realtor to determine which type of home you would like to buy and view. Homes coming up for sheriff sale are not normally opened to the public for viewing and are bought sight unseen. For a listed home or bank-owned home, tours can be arranged, allowing the buyer more insight into the work the home will need to become livable.

Tips & Warnings

• Always check the court records for the home to find outstanding liens.

Resources

• Multi Listing Service
• Realtor.com