Where to Find Free Property Foreclosure List

Foreclosures can be the result of overdue mortgage payments or unpaid taxes imposed by the Federal and State government. To recover the amount, the lender initiates foreclosure proceedings. Depending upon the terms of the mortgage deed, the lender may take the borrower to court or complete the foreclosure proceedings outside the judicial system.

The net result is that the lender tries to sell off the house at an auction since the house is the collateral for the mortgage loan. Free property foreclosure listings aim to bring together the buyer and the seller. Keep reading to find out how the buyer can scout the market for the best deals.

REO or real estate owned, refers to the property owned by the mortgage lender following an unsuccessful auction. In this case, the mortgage lender purchases the property at the minimum bid price. Since banks are not interested in carrying REO inventory, they try and sell off these homes to potential buyers. Banks have a list of REO on their website.

When banks initiate foreclosure proceedings, they negotiate with the creditors and get rid of liens and taxes. They also have the property appraised. Hence, the buyer does not have to spend on getting the property appraised. The buyer can contact the banks directly or get in touch with an agent who, in turn, will make an offer to the banks.

In fact, buying directly from a bank saves the buyer the hassle of bidding at an auction. Moreover, the buyer does not have to concern himself with the unpleasant task of evicting tenants.

The HUD (US Housing and Urban Development) website has a comprehensive list of single and multifamily homes or REO intended for sale. The website also connects the buyer to the list of homes available for sale by the various entities.

Some entities are: Department of Veterans Affairs, Federal Insurance Deposit Corporation, Internal Revenue Service, Small Business Administration, US Army Corps of Engineers, Customs, U.S. Marshals Service, Department of Agriculture and Rural Development, Fannie Mae, Freddie Mac, Realtor and General Service Administration.

Again, both single and multifamily home listings are available on these websites.

All newspapers have a section for legal notices. Properties under foreclosure are often listed in this section. The name of the home owner, the name of the lender and the date and location of public auction are also mentioned. The buyer can then arrive at the site of the auction and bid for the property.

However, the buyer would have to evict the occupants of the house after purchasing the property. Hence, buying from the above mentioned entities may be preferable. This is especially true for first time buyers who do not have the necessary experience in buying a foreclosed home.

With foreclosures on rise, many buyers are considering buying home under foreclosure, which may be sold for as low as 20 - 40 percent below its market value. Foreclosed properties can be purchased at an auction or directly from the aforementioned entities. It may be advisable to contact the bank rather than engaging in a bidding war at an auction.

In case proceedings were initiated due to the home owner's inability to pay taxes, the property may be sold off for as less as 50 - 70 percent below market value. Hence, it's evident that foreclosures sales benefit the buyer at the expense of the homeowner and the mortgage lender.