Government Websites, Real Estate Agents, A Drive around the Block, And More Ways to Find REO Homes in Your Area
Looking for a great deal on a home? Real estate-owned (REO) properties might be the answer. Here’s the answer to how to find REO homes in my area.
Buying a home can be expensive, but owning or investing in one doesn’t have to drain your savings. There’s one type of property worth considering when looking for an affordable way to achieve your homeownership or property investment dreams: Real Estate Owned (REO) properties.
These bank-owned homes are often sold below market value, giving budget-conscious buyers a chance to score a great deal. So you may be wondering: how to find REO homes in my area?
Find a Top Agent For Your REO Home Purchase
If you’re in the market for a real estate-owned home, the process can be a little different from a traditional real estate transaction. Work with an agent who specializes in REO sales.
To find the best place to find REO homes, we did a lot of digging, looked at banks, the U.S. Marshals, auction sites, and government-sponsored enterprises, and talked with Chris Barnett, a real estate agent in Birmingham, Alabama, who specializes in REO properties. We have compiled this list of the best ways to find REO homes in any area.
What is an REO home?
Real estate-owned, or REO, homes result from the foreclosure process, which varies from state to state. If a homeowner is unable to make their mortgage payments, the bank can ultimately foreclose on the home.
Once the home is foreclosed, it will typically go up for auction. This happens in one of two ways: through the local court or sheriff’s office in a judicial foreclosure, or through the mortgage company in a power of sale or non-judicial foreclosure. If the home doesn’t sell at this stage, then the bank will take possession of it, and it becomes an REO home.
The bank will then work with a listing agent to list the home on the multiple listing service (MLS). These types of homes can be a great way to invest in real estate, offering a good deal and a higher return on investment (ROI).
The latest ATTOM report reveals that over 36,000 properties completed foreclosures in 2024, a 13% decrease from 2023 and a 75% decline from 2019. California, Illinois, Pennsylvania, Michigan, and Texas had the highest number of REOs.
Now that you know what a REO home is, let’s answer the pressing question: how to find REO homes in my area?
