After foreclousre what happens to the property?

Question

After a house has gone through foreclosure, and it is REO. What market does this house show on? Or, how can I find REO properties? I am trying to understand this whole problem is full circle, but I don't understand what happens to all these properties, after all the bank doesn't own them forever.... How do they get back into the hands of public middle class ownership?

Answer 1

You can ask any realtor or there are several websites that show forclosure listings.

Answer 2

The property is generally sold at discount. You can search for foreclosed properties on Yahoo Real Estate, but it will cost you more to look at foreclosed properties because of their discounted status.