How do you buy a foreclosed home?

Question

I have 2 questions actually:
I see a lot of foreclosed homes in my area (assuming that a boarded up home is foreclosed) & since there is no "for sale" sign, how do you get the information on that house? who do you contact? where do you go? etc.

Also, when I look up cheap foreclosed homes on trulia and other real estate sites, they basically direct me to Realty Trac...... I -KNOW- there has to be a way to find info on a foreclosed home WITHOUT having to pay for a membership (or whatever it's called) with Realty Trac. Maybe that's not true, but if so, how? I did a free trial with them already don't feel as if I need to pay monthly just to look at a couple homes.........

Hopefully someone can help with a clear straight forward answer. Thanks!

Simon Campbell · Answer

Chris Martin is correct. Your first step is to check on the ownership via county records.  You can also see if there is a NOD or Notice of Default filed on the property.

Just because the house is "abandoned" does not mean that it is foreclosed upon.  But abandoned houses can be really good real estate leads.

As to foreclosures, buying one depends on where it is in the process.  Anything before the property auction is negotiated with the homeowner (and the lender if it is a short sale).

Auction properties can be tricky and require payment in full without time to go get bank financing.

Foreclosures after an auction are called REO or real estate owned properties.  Bank owned properties that have no sign are usually in the redemption period where the owner can come and payoff the auction price plus interest and reclaim the home. (There is potential to buy this right from the homeowner.)

After the redemption period, the property is 99% of the time listed with a real estate agent. All offers need to go through the agent.  These purchases are handled like any other real estate transaction.

Chris Martin · Answer

The clear, straight forward answer is to look up the owner in public record. Someone is responsible for paying taxes, and the county knows who that someone is. Access to county records is free and most areas have free internet access to these records. www.realtor.com(basically a type of limited MLS access) is also free, although if properties aren't yet listed, they may not show up there.

The assumption that a boarded up home is foreclosed isn't necessarily a good one in all areas.