The last step left to do after you have made you decision to invest in foreclosures is finding the right foreclosure properties. There are many sources to find properties that are in foreclosure. The two major categories are reo properties and government foreclosures.

There are a variety of types of government foreclosures. Examples range from a wide variety of governmental agencies, from housing to veterans to banking administration agencies, to other more traditional sources, such as Fannie Mae and other quasi-governmental institutions. There is even a governmental agency that is solely responsible for figuring out what to do with property it no longer wants and getting rid of it!

With respect to bank reo you will find many banks have their REO listings on their websites and can even find directories of the banks that do online. Otherwise you can find many bank owned real estate via asset management companies. It is their job to help lenders dispose of such assets and many asset managers list the REO properties of the banks they work for on their own website.

Looking at pre-foreclosure properties as an alternative source for one's investments is very important. A decent understanding of the foreclosure process is necessary to be able to capitalize on this option. At different stages of the foreclosure process, notices are recorded with the County Clerk. This enables one to access public records and to easily locate properties that are heading towards foreclosure. Once the property of interest has been located, the owners of the said property can be approached for inquiries about acquisition of the property prior to foreclosure.

When a bank or mortgage company forecloses on a property, they have to make the process public by printing a Notice of Sale in the town paper. By hunting through the relevant sections of your local paper, you can find these notices pretty easily. Make sure that you know exactly what you're looking at with any property that you buy at a trustee sale, though. These properties are often marketed just as they are, and may need extensive repairs or remodeling.

A good use of your time is to get familiar with the website in the area that is the focus of your search, in order to see what is available in the way of foreclosure research. This data is of use if you want to get the land before the actual foreclosure, or if you prefer to bid at a foreclosure auction.

The best strategy is to use multiple resources in searching for foreclosure properties rather than subscribing to one database. The most successful investors utilize several different listings in multiple categories. For instance, to maximize your options, it is best to include the inventories of several banks, asset managers, government departments, and the country clerk in your review. Diversifying your search in this way will give you a great advantage compared to other investors.