In the past, finding foreclosures meant physically visiting courthouses. Today, online platforms provide easy access to foreclosure data, which has increased investor competition. Many websites now alert users as soon as new filings hit the public record, giving a critical edge to those who act quickly.

Understanding the Foreclosure Process

• After 90 days of missed payments, lenders send a notice of default giving the borrower 30 more days to catch up.

• After 120 days, lenders can initiate foreclosure proceedings, typically by filing a notice of trustee’s sale.

• This is followed by a public notice period, then the foreclosure auction, where lenders often start bidding at the full loan amount—too high for most buyers.

• If unsold, the property becomes bank-owned (REO), and the bank proceeds with eviction if necessary before listing the property for sale.

Three Key Stages for Buying Foreclosures

Pre-Foreclosure

Investors can approach homeowners after foreclosure has been filed but before the auction. These sellers are often motivated to avoid losing their equity, so they may sell at a discount.

Challenges:

• Very short window to act.

• You must contact owners early and close fast.

• Best done with accurate, timely data from foreclosure websites.

Auction

Buying at auction can offer deep discounts, but comes with serious risks:

• You usually can’t inspect the interior.

• You may have to evict the current occupants.

• Lenders typically start bidding at full loan value, making many properties unattractive.

REO (Real Estate Owned)

These are foreclosed properties that banks couldn’t sell at auction. They are listed on the MLS, meaning:

• You can inspect the property.

• Competition includes other investors and homebuyers.

• Prices are higher, but it’s easier to finance and buy.

What to Look for in a Foreclosure Website

The best foreclosure websites help you:

• Access up-to-date listings across all 50 states.

• Search using detailed filters (location, property type, status).

• Act quickly—speed matters, especially with pre-foreclosures.

• Balance cost with features: some charge fees, others are free but limited.

Before subscribing, check reviews and test free trials to find the platform that fits your investing goals.

Top 10 Websites to Find Foreclosed Properties

1. Foreclosure.com

• What it Offers: Pre-foreclosures, auctions, REOs, tax sales.

• Why It’s Good: Updates twice daily. Broad coverage.

• Cost: $39.80/month (7-day free trial)

2. Propstream

• What it Offers: Foreclosures + other distressed property types (e.g. divorce, zombie properties).

• Extras: Marketing tools, renovation calculators, list management.

• Cost: $99/month (7-day free trial) + extra for add-ons

3. RealtyTrac

• What it Offers: Full foreclosure process listings, comps, tools, market data.

• Why It’s Good: In-depth research tools.

• Cost: $49.99/month (30-day free trial)

4. Auction.com

• What it Offers: Foreclosure and REO auctions only.

• Why It’s Good: Mobile-friendly bidding and no subscription.

• Cost: 5% buyer’s premium on purchases

5. Equator

• What it Offers: REOs, short sales, turnkey rentals, USDA-eligible homes.

• Why It’s Good: Free with MLS and auction property integration.

• Cost: Free

6. Zillow

• What it Offers: MLS-listed REO properties.

• Why It’s Good: Free comps and research tools.

• Limitations: Weak for pre-foreclosures or auctions.

• Cost: Free

7. Realtor.com

• What it Offers: REO listings on the MLS.

• Why It’s Good: Easy-to-use filters, tax data, calculators.

• Cost: Free

8. HUD Homes

• What it Offers: Government-owned foreclosures (HUD, VA, USDA, IRS).

• Why It’s Good: Nationwide access to affordable properties.

• Challenges: Must use a HUD-certified agent; expect red tape.

• Cost: Free

9. Fannie Mae & Freddie Mac

• What it Offers: Fannie Mae’s HomePath and Freddie Mac’s HomeSteps sites list their REOs.

• Cost: Free

10. Bank Websites (BoA & Wells Fargo)

• What it Offers: REO properties from their foreclosure pipelines.

• Where to Look:

  • Bank of America Real Estate Center

  • Wells Fargo REO

Your foreclosure buying strategy should determine which platform you use:

• For pre-foreclosures and auctions, you’ll likely need to pay for fast, premium data.

• If you focus on REOs, free tools like Zillow, Realtor.com, or government websites may be enough.

Foreclosure investing isn’t just about finding deals—it’s about acting fast and managing your pipeline smartly.