Best Foreclosure Websites to Find Homes
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Are you looking to score a great deal on a home? Whether you’re a first-time homebuyer aiming to save or an investor seeking a property to flip, foreclosure listings can offer significant opportunities.
In this guide, we’ll share some of the best websites for foreclosures, including free, paid, and government resources. We’ll also provide essential tips and insights to help you make informed decisions on your path to finding a foreclosed home.
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What are foreclosure websites?
Foreclosure websites are online platforms that list properties in various stages of foreclosure. These websites compile data from banks, government agencies, and real estate services to provide comprehensive listings of homes that are being sold due to the owner’s inability to meet mortgage obligations.
By using foreclosure websites, potential homebuyers and investors can find properties often priced below market value. These sites typically offer detailed information about each property, including price, location, photos, and contact details for the seller or the agency handling the sale.
Some websites provide additional services such as market analysis tools, alerts for new listings, and educational resources to help users navigate the foreclosure buying process.
Free websites for foreclosure listings
Zillow foreclosures
Zillow offers a comprehensive search tool for finding foreclosed homes across the country. With an easy-to-use interface, you can filter your search by price, location, and property type. Zillow provides detailed listings, including photos, estimated mortgage payments, Zestimate, and neighborhood information. Additionally, you can set up alerts to notify you of new foreclosure listings in your desired area. Learn more on the Zillow Foreclosure Center page.
Realtor.com foreclosures
Realtor.com foreclosures is another valuable resource for finding foreclosed homes. This site, owned by the National Association of Realtors, aggregates listings from multiple sources, including the Multiple Listing Service (MLS). This helps ensure accuracy and a broad selection of properties. The user-friendly platform allows you to refine your search with various criteria, such as price range and property features. Each listing includes essential details like photos, descriptions, and contact information for agents or banks handling the sale.
Equator.com
Equator.com offers a comprehensive free website for finding foreclosed homes, short sales, and open market listings posted on the Hubzu auctions platform. The site is popular with real estate professionals and investors. With a user-friendly interface, you can search for properties by location, price, property type, and as determined by your investment goals. Additionally, Equator offers a buyer program tool to help determine investment potential and tools investors can use after the purchase to rehab, manage, and sell properties. It should be noted that not all listings on Equator’s website are foreclosures.
Bank of America foreclosures
Bank of America maintains a site with real estate-owned (REO) and bank-owned home listings. Inventory on the BofA site is limited. It currently shows home listings in only 12 states. However, as a major financial institution with vast resources, Bank of America offers helpful tools, resources, and mortgage products to assist buyers looking for a foreclosure property. Each listing includes comprehensive details such as photos, property descriptions, and contact information for the bank’s real estate agents.
Paid websites for foreclosure listings
Foreclosure.com
Foreclosure.com offers a free preview trial followed by a weekly subscription fee. This service targets investor buyers looking for the best house-flip deals. The site hosts a vast database of foreclosure listings nationwide. This site features a user-friendly interactive map search tool. You can search by location, property type, and auction date. You can also subscribe to receive email alerts. Foreclosure.com also offers educational resources in its Learning Center to help you understand the foreclosure buying process and make informed decisions.
RealtyTrac.com
RealtyTrac provides a premium service offering extensive foreclosure listings and market data. With a subscription, you gain full access to detailed property information about foreclosures, preforeclosures, bank-owned homes, MLS listings, distressed properties, auctions, and short sales. With a subscription, you’ll have access to the property owner’s contact details, auction dates, and estimated market values. RealtyTrac also provides tools for analyzing trends in the foreclosure market, helping you identify the best investment opportunities. While there is a free trial offer, this service is most fitting for active investors willing to pay a monthly subscription fee.
Auction.com
Auction.com bills itself as the “largest online source of foreclosure and bank-owned properties not on the MLS.” It is a leading platform for investors buying foreclosed homes through online auctions. The platform offers innovative technologies like its Remote Bid, which allows buyers to bid and win foreclosure properties using a mobile phone app. Each listing on the site provides detailed information, including starting bid prices. Auction.com also offers resources to help you understand the auction process, including bidding guidelines, financing options, and market insights. With real-time updates and alerts, you can stay informed about upcoming auctions and new listings that match your criteria.
Government websites for foreclosure listings
HUD Homestore
HUD Homestore is the official site for listings of government-owned properties, including those managed by the U.S. Department of Housing and Urban Development (HUD). These homes are typically properties that were financed with an FHA loan and have now been repossessed. Homes are often available at significant discounts and may qualify for special financing or closing cost assistance programs. The site provides detailed property information, photos, and instructions for submitting offers. The HUD Homestore offers 30-day priority access for buyers looking for a primary residence.
HomePath by Fannie Mae
HomePath is operated by the Federal National Mortgage Association, also known as Fannie Mae. The site offers an extensive number of listings of properties owned by Fannie Mae. These homes are typically foreclosed and available at competitive prices. HomePath provides detailed listings, including photos, descriptions, and information about financing options. The site also features a 30-day “First Look” period for buyers who plan to use the home as a primary residence. This initiative gives eligible buyers an exclusive opportunity to purchase properties before investors.
Homesteps by Freddie Mac
Homesteps is a resource for finding homes owned by Freddie Mac that have been acquired through foreclosure. The site offers a limited selection of properties, so you may need to be flexible about location, and patient in your search. Like HUD’s Homestore and Fannie Mae’s HomePath, Homesteps also offers a 30-day First Look priority access period for buyers looking for a primary residence. The site allows you to register for a free HomeSteps home search account so you can save your home searches and receive weekly email notifications about new homes that match your search criteria.
USDA foreclosures
The USDA foreclosures website lists properties owned by the United States Department of Agriculture. We almost left this one off our list of “best foreclosure” websites because it only has a small number of property listings. However, you may find something in your price range if you’re flexible about locations. The site’s interface is also not as flashy as the others on our list, but you can search for homes that are often located in rural areas and may qualify for special USDA financing.
Pros and cons of buying a foreclosure home
Pros
- Potential for lower prices: Foreclosed homes are often sold below market value, providing an opportunity to purchase property at a significant discount.
- Investment opportunities: Buying a foreclosed home can be a lucrative investment, especially if you plan to renovate and resell or rent out the property.
- Motivated sellers: Banks and lenders are often eager to sell foreclosed properties quickly, which can lead to more favorable negotiating terms for buyers.
- Wide selection: There is usually a wide variety of foreclosed homes available, allowing buyers to choose from different types, locations, and price ranges.
Cons
- As-is condition: Foreclosed homes are typically sold in as-is condition, which means you may need to invest in repairs and renovations.
- Other possible liens: The title may not be clear of liens because apply to the property, not the person who owes the debt. Title insurance is a must.
- Competition: The lower prices of foreclosed homes can attract multiple buyers, leading to bidding wars and higher final prices.
- Move-in date delays: In nonjudicial foreclosures, the lender or purchaser might need to issue a Notice to Quit or file eviction proceedings, causing delays.
- Risk of poor maintenance: Previous owners who faced foreclosure may not have had the resources to maintain the property, leading to potential issues with the home’s condition.
- Issues with right of redemption laws: In some states, the original owners have months to buy back the home after the sale. The previous homeowner may be able to legally remain in the property during the redemption period.
Tips when buying a foreclosed home
- Partner with an experienced agent: Work with a real estate agent who has expertise in foreclosure properties to guide you through the process and help you avoid common pitfalls.
- Get preapproval for your loan: Secure preapproval for your mortgage to demonstrate to sellers that you are a serious buyer and to expedite the purchasing process.
- Check out the neighborhood: Visit the neighborhood to ensure it meets your needs and expectations, and to assess the potential for property value appreciation.
- Know the market before you bid: Understand the local real estate market conditions. If other foreclosures are selling fast, be prepared to bid higher to secure the property.
- Be prepared for as-is condition: Expect that the home will be sold as-is and budget for potential repairs and renovations.
- Research the home’s value: Get an appraisal and inspection to accurately determine the home’s market value and identify any issues that may need addressing.
- Don’t assume the home has a clear title: Conduct a thorough title search to ensure there are no outstanding liens or claims against the property.
- Patience is required: The process of buying a foreclosed home can be lengthy and complex, so be prepared to exercise patience and flexibility throughout.
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Find an agent with foreclosure expertise
Finding the right foreclosed home for you can be challenging. Partnering with an experienced real estate agent who specializes in foreclosures can make the process smoother and more successful.
Top agents have the knowledge, expertise, and local connections to help you identify the best properties, negotiate favorable terms, and avoid potential pitfalls.
HomeLight can connect you with agents who have a proven track record in handling foreclosure transactions.
Good luck on your journey toward a great deal.
Header Image Source: (Zoe Ella Mumford/ Unsplash)
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