2 Replies

@Mike C. you should be looking to get "PRE" foreclosures...or some other delineation of that term. If the property has already been foreclosed upon then it's either to the courthouse steps or the MLS that you will find them.

REO - bank owns the real estate so they will go through their steps to getting it on the market (MLS with an agent). Foreclosure means several things to several people. Pre-foreclosure would mean that the homeowner is somewhere between having a Notice of default filed with the county recorder's office on behalf of the lender (this is a public document) & the last day before the court house steps auction. AFter the NOD comes the NTP (Notice of trustee sale) which means the homeowner is at a much greater risk of being foreclosed on since they have not cured the NOD and the trustee sale date at the courthouse steps is closing in. Both NOD and NTS filings are public record and can be obtained at your county recorder's office. Until it gets to the court house steps, the home has not been foreclosed upon. If nobody bids above the bank's set minimum bid, then the home goes to the bank and that process to get to the MLS begins.

Back in the day, the asset managers controlled the REOs and with the right relationships, once could get to them before they hit the MLS but the rules changed several years after the last housing crash of 2008. Hedge funds and big players buy "tapes" of REO properties and sometimes will sell off some and keep some.