# How To Find Real Estate Owned Properties
If you're new to real estate investment and thinking about getting into the "REO property" ring, you might be wondering where to find REO properties (and how to close those deals once you find them).

Understanding how to buy a bank-owned property can be a successful addition to your real estate investing portfolio, even if there are numerous obstacles to overcome and placing a [REO](https://safeguardproperties.com/) offer on a home demands patience. One of the better exit options for seasoned investors may be bulk purchasing of REO homes.


## What Is An REO Property
An REO property, or real estate-owned property, is a bank-owned house that didn't sell at auction after the owner ceased paying mortgage payments. Being a REO property involves the following steps:
When a borrower (homeowner) misses a payment on a mortgage, the lender starts the foreclosure process.

* Lender gives default notification.
* The borrower continues to be in arrears on payments.
* Lender publishes a notice of sale.
* The borrower fails to fulfil the lender's requirements.
* A public auction is held to sell the home.
* The house doesn't sell at auction.

Ownership of the property is taken over by the lender, who then sells it to buyers or investors.

## Where To Find REO Deals
Knowing how to purchase homes from banks is one thing, but if you're going to invest, you need to know where to go for the best prices. Here are two methods to help you answer the question "where to find REO deals" and put yourself in a great position to buy a real estate owned property.

**Public Records:** Every time a property enters foreclosure, the County Clerk must be notified. As their name implies, these materials are accessible to everyone and can be viewed. Searching for a Notice of Default (NOD) or Notice of Sale would be beneficial. The fact that these searches are entirely free is the finest part.

**Bank REO Listings:** All of the accessible [REO](https://safeguardproperties.com/) properties are compiled into lists by the majority of lenders. The Bank REO Real Estate blog's website has a collection of several of the bigger ones. Despite being free, the search is time-consuming due to the sheer volume of entries.
Utilizing these research-based sources has the benefit of being either cost-free or having a low fee, like with RealtyTrac. They are a disadvantage since they consume precious time and energy. Any other investor looking for a REO property can access them (making it difficult to get a jump on the competition).