The Complete Guide to Finding REO Properties: 100+ Sources Banks Don't Advertise

Most investors chase the same foreclosure listings as everyone else. By the time a bank-owned property shows up on Zillow, it's already been picked over.

The truth? The best REO deals never hit the MLS.

This guide is the directory I wish I had when I started—every government agency, major bank, auction platform, and asset management company that holds REO inventory. Bookmark it. You'll use it constantly.

Why REO Properties Deserve Your Attention

Banks aren't in the real estate business. When they foreclose on a property, it sits on their books as a non-performing asset, reducing their capital for lending. Federal regulations give them roughly five years to sell.

This creates motivated sellers with institutional patience but real pressure to move inventory.

The opportunity: Position yourself as a reliable, no-hassle buyer, and you become valuable to asset managers evaluated on how quickly and efficiently they clear properties—not on squeezing every last dollar.

Part 1: Government-Sponsored Enterprises (GSEs)

These are the largest holders of REO inventory in the country. Start here.

Fannie Mae HomePath

Website: homepath.fanniemae.com

The biggest GSE REO inventory. Their "First Look" period gives owner-occupants priority before investors can bid. Properties are generally maintained and the process is professional.

Pro tip: HomePath also lists non-Fannie properties, so filter carefully if you want just their REO.

Freddie Mac HomeSteps

Website: homesteps.com

Second largest GSE with similar First Look Initiative. Their "Good Neighbor Practices" mean properties are secured, cleaned, and maintained—you won't find graffiti-covered disasters here.

Part 2: Government Agencies

Government foreclosures are often overlooked. That means less competition.

HUD (Department of Housing & Urban Development)

Website: hudhomestore.gov

FHA-insured loans that defaulted. Sold "as-is, where-is"—expect more condition issues but lower prices.

Special programs:

• Good Neighbor Next Door: 50% off for teachers, law enforcement, firefighters, EMTs
• Dollar Homes: Some properties available to local governments for $1

Important: You need a HUD-registered broker to submit offers.

USDA Rural Development

Website: properties.sc.egov.usda.gov

Rural properties with extra discounts on fixer-uppers. If you're investing in rural markets, check here first—inventory that local investors often miss.

VA (Veterans Affairs)

Website: vrmproperties.com

Here's what most investors don't know: VA foreclosures are open to everyone, not just veterans.

Common in areas with military presence, but they exist nationwide. The misconception that these are "veteran-only" means less competition for you.

Other Federal Sources

Part 3: Major Bank REO Portals

Every major bank has REO inventory. Most have dedicated portals or you can search their main site.

The real opportunity: Community banks and credit unions. They have smaller REO departments, less sophisticated marketing, and fewer investors competing for their inventory.

Use NCUA Credit Union Locator to find credit unions in your target market, then call their Special Assets department.

Part 4: REO Auction Platforms

This is where most bank inventory actually trades.

Auction.com

Website: auction.com

The 800-pound gorilla. 510,000+ properties sold. Bank-owned and foreclosure auctions.

• Buyer premium: 5% or $2,500 (whichever is greater)
• FCL Predict feature: Shows which foreclosures are most likely to actually go to auction
• Free to create buyer account

Hubzu

Website: hubzu.com

212,000+ homes sold. Online auction platform with rent estimation tools. Mobile app available.

Other Platforms

Part 5: Asset Management Companies

Here's what most investors miss: Banks don't manage their own REO. They hire asset management companies (servicers) who handle everything from property preservation to disposition.

Building relationships with these companies—or the brokers they work with—gets you deal flow that never hits public channels.

Major Servicers

How to use this: These companies work with approved brokers in each market. Find out which local agents handle REO for these servicers—they get first look at inventory.

Part 6: Aggregators & Search Tools

Sites that pull listings from multiple sources:

Part 7: Track the Pipeline (Before Properties Become REO)

The smartest investors don't wait for REO listings. They track the foreclosure pipeline and position themselves early.

Data sources:

• County recorder websites: Free access to lis pendens, NOD (Notice of Default), and NTS (Notice of Trustee Sale) filings
• RealtyTrac/ATTOM: Paid foreclosure filing data
• PropertyRadar: West Coast focused, excellent for tracking timelines

The strategy: Properties that don't sell at foreclosure auction become REO. If you've already researched a property and know its value, you can move fast when it hits the servicer's inventory.

Even better: Contact borrowers before foreclosure. Many will accept reasonable offers to avoid credit damage.

Part 8: Credit Unions (The Overlooked Opportunity)

Credit unions foreclose on properties too. Most have tiny REO departments with zero marketing sophistication.

How to find them:

1. Use the NCUA Credit Union Locator
2. Call and ask for "Real Estate Owned" or "Collections" department
3. Check their websites for property listings
4. Many work with a single local agent—find that agent

Part 9: Bulk & Portfolio Opportunities

For investors ready to scale:

• Auction.com Bulk Platform: Portfolios of 10-100+ properties
• Debt buyers: Purchase NPL (non-performing loan) portfolios and immediately resell individual assets
• Private equity offloads: FirstKey, Pretium, Invitation Homes sometimes divest individual properties
• Direct bank negotiations: Approach special assets departments for bulk deals

You won't get bulk pricing buying one property at a time. But building relationships with portfolio buyers gives you access to properties they're looking to quickly offload.

Your Action Checklist

Start finding REO deals this week:

• Register on HomePath.fanniemae.com
• Register on HomeSteps.com
• Create account on HUDHomestore.gov
• Create buyer accounts on Auction.com and Hubzu
• Check USDA and VA property portals
• Visit Bank of America and Wells Fargo websites and search for REO
• Use NCUA Credit Union Locator to find credit unions in your market
• Call Special Assets at 10 local community banks
• Call 5 local credit unions
• Connect with 2-3 agents who specialize in REO
• Set up foreclosure alerts on your county recorder website

The Bottom Line

REO deal flow rewards relationship-building over clever tactics.

The directory above gives you every public source. But the real edge comes from understanding that asset managers want reliable, hassle-free buyers. Position yourself as someone who solves problems—not creates them—and doors open.

Track the pipeline. Build broker relationships. Call the community banks nobody else is calling.

The deals are there. Now you know where to find them.

Need to quickly analyze REO opportunities when they come across your desk? UWMatic's deal analyzer helps you evaluate properties in minutes—so you can move fast when asset managers call.