Pre-foreclosures, which are in the period before the foreclosure sale.
Foreclosures, which exist when the property is taken back by the lender and sold at public sales.
REOs, which exist when the lender ends up with the foreclosed property in it's own inventory after the public sale.

How do I find the owners and borrowers?

Pre-foreclosure Properties – You can approach the owner or borrower up until the time when the property actually is sold through foreclosure proceedings. If the owner or borrower isn’t living in the property, use one or more of these methods to hunt them down:

* Don't be shy! KNOCK ON THE DOOR! - Simply be polite and see if you can gather information directly from the homeowner or renter. If you can get in the door you stand a much better chance of making an offer or finding out where the owner is. You are offering folks a way out of foreclosure -and possibly a more lenient approach than the bank might take to when they must vacate- if you buy the home.

* By Mail – Send a letter to the owner/borrower at the property address or leave a letter for the owner/borrower at the property address (if you put it inside a mailbox, the USPS requires that you put a first-class stamp on it). In the letter, explain that you understand the property is going into foreclosure, and that you have some options so the owner/borrower can avoid credit problems, or possibly even retain ownership.

* Use Public Records – If the owner/borrower doesn’t live in the property, check with the county courthouse. They’ll have the owner/borrower’s name on record.

* Ask Neighbors – If the property is vacant, talk with neighbors to see if anyone knows how to reach the owner/borrower. Be sure to tell them you’ve got information to help the owner/borrower.

* Open the Telephone Book – If you still can’t locate the owner/borrower, try calling people who have the same last name. You might happen upon a relative.

Foreclosure Properties – You’ll find foreclosed properties at a public sales. The day, date, time and place is published in the newspaper. The usual location for foreclosure sales is at the county courthouse, and sometimes, they’re conducted on the courthouse steps.

REOs – After the foreclosure proceedings, the lender may end up with the property if no one bids more than the lender’s bid, which is equal to the loan balance. At this point, the property is referred to as an REO or “real estate owned” (by the lender) property. REOs are great investment opportunities.