When an owner is unable to pay the mortgage to the lender over a period of time, the home may be sold by the lender to recoup losses. You will find these homes advertised in the local papers. Check with local lenders to see if they handle foreclosed property. You may need to be pre-qualified by a lender before bidding at an auction where these properties are sold. As a word of caution, ensure that a thorough title search is completed before going ahead and having this listed as a contingency on the sales agreement. Plus, check if any taxes are due. Also have a thorough inspection of the property completed to ensure you are not purchasing a home for which you will need a large amount of money to repair and decorate.can also help with any other ways you decide how to look for a home.