If a foreclosed home doesn’t sell at auction, a bank or lender will then own it. These homes are referred to as Real Estate Owned, or REO, listings. Given that banks are not in the business of buying and selling homes, most will be eager to get these properties off their balance sheets, and thus will sell at a reasonable discount. Some lenders will send out a list of REO properties out via email or newsletter, but investors can also simply call local banks and ask if they are trying to get rid of properties. Like above, be wary of liens and of fundamental damage to a property before buying.