Good travelers of the week, thank you for stopping by again!
I love the traffic because what can someone at a newsstand do if no one wants the news in it?! Nothing I tell ya, NOTHING. Today, we talk about the second of four parts to finding deals with undesirable homes.
How to Find Hidden Real Estate Deals Off the MLS
If you’re trying to score a great real estate deal, chances are you’re not going to find it sitting pretty on Zillow or the MLS. The best deals are often tucked away — properties that are distressed, bank-owned, in pre-foreclosure, or headed to auction. These aren’t your cookie-cutter listings — but with a little hustle, they can lead to big equity and strong investment returns.
Let’s break down how you can find these types of properties and start building your real estate portfolio smarter — not harder.
1. Bank-Owned (REO) Properties
When a home goes through foreclosure and doesn’t sell at auction, it becomes “Real Estate Owned” (REO) by the bank. These properties are often vacant and sold as-is, but banks are motivated sellers, and sometimes you can negotiate a solid deal.
Where to look:
- Go directly to bank websites like Wells Fargo, Chase, or Bank of America — they often list REO properties.
- Use platforms like Hubzu, Auction.com, or RealtyTrac.
- Reach out to real estate agents who specialize in REO listings.
Pro tip: Banks will usually clean title before listing, so you’re less likely to inherit a mess — but still do your due diligence.
2. Short Sales
A short sale happens when a homeowner is underwater — meaning they owe more on the mortgage than the home is worth — and they get the bank’s permission to sell the home for less than the loan amount.
Where to find them:
- Work with agents experienced in short sales — they know how to filter for these deals in MLS.
- Look for pre-foreclosures on sites like Zillow (yes, some still make it there).
- Knock on doors or send letters if you know someone behind on payments — timing matters.
Heads up: Short sales can drag out for months because they need lender approval. But if you’re patient, you can score a major discount.
3. Tax Delinquent Properties
These are gold mines. When homeowners fall behind on property taxes, their homes could eventually be seized and sold at a tax deed or tax lien auction. Many investors love these because the properties are often sold for pennies on the dollar.
How to find them:
- Visit your local County Tax Collector’s or Treasurer’s website. Many have public lists of delinquent properties.
- Sign up for notifications of upcoming tax deed or lien auctions.
- Attend local investor meetups or Facebook groups — tax sale pros often share tips and hot leads.
Bonus tip: Some counties allow you to redeem the lien (essentially becoming the lender) and earn interest if the owner pays — or get the property if they don’t.
4. Foreclosure Auctions
These auctions happen when a lender repossesses a home due to missed mortgage payments and puts it up for sale to the public — usually at the courthouse steps or online.
How to get in on the action:
- Check your county clerk or sheriff’s website for a schedule.
- Sites like Auction.com, HudHomeStore, and Foreclosure.com are great resources.
- Bring cash or a cashier’s check — most auctions require immediate payment or a large deposit.
Keep in mind: You often can’t inspect the inside before bidding, and you may have to evict occupants post-purchase. So tread carefully and research the title and liens beforehand.
Putting It All Together
Finding deals off the MLS takes some digging, but it’s totally worth it. You’re not just buying a home — you’re solving a problem for someone else, whether it’s a bank, an overwhelmed homeowner, or the government.
Here’s a quick action plan:
✅ Pick 1–2 methods and go deep (don’t try to chase all the rabbits).
✅ Build relationships with agents, attorneys, and county officials.
✅ Learn your local laws on auctions and redemptions.
✅ And most importantly — stay consistent.
Great deals are out there. They just don’t wear “For Sale” signs.
REFERENCES:
Auction.com. (n.d.). Find real estate & homes for sale. Retrieved June 22, 2025, from https://www.auction.com/
Bank of America. (n.d.). Real estate owned properties. Retrieved June 22, 2025, from https://reo.bankofamerica.com/
Foreclosure.com. (n.d.). Foreclosures, pre-foreclosures & foreclosure auctions. Retrieved June 22, 2025, from https://www.foreclosure.com/
Hubzu. (n.d.). Buy and sell homes online. Retrieved June 22, 2025, from https://www.hubzu.com/
RealtyTrac. (n.d.). Foreclosure and bank-owned properties. Retrieved June 22, 2025, from https://www.realtytrac.com/
United States Department of Housing and Urban Development. (n.d.). HUD homes. Retrieved June 22, 2025, from https://www.hudhomestore.gov/
Zillow. (n.d.). Pre-foreclosure listings. Retrieved June 22, 2025, from https://www.zillow.com/foreclosures/