Prepare your resources
You'll need to make sure you're armed with the resources you'll need to buy a foreclosure.

Tip: Start a foreclosure file to organize all the documents and research that you'll accumulate during the process of searching for and buying a distressed property.

Find a good source for foreclosure listings
Thanks to the advent of the Internet, you no longer have to depend on printed listings to be mailed to you. RealtyTrac has online listings that are updated daily. RealtyTrac is also the only national provider of both pre-foreclosure and foreclosure data, besides offering a very reasonable subscription rate. In any case, there are several questions you can ask of any foreclosure listing service to help determine its usefulness.

Decide whether you want to use an agent
If you're a first-time homebuyer and you've never purchased a home, let alone a foreclosure, it may be beneficial to contact a local real estate attorney or consult an agent experienced in buying foreclosures. As a subscriber to RealtyTrac, you will have access to our national network of foreclosure specialists, agents who can help you follow-up on our listings.
If you work with an agent, make sure they know your priorities. Not all agents have much experience with foreclosures, so ask any potential agents if they have experience with foreclosure sales. Especially for first-time buyers, a good agent can be a comforting and helpful resource.

Make a checklist of what you're looking for in a home
Your checklist should include as many factors as you can and then prioritize them. You may not ever get the perfect home, but a checklist will help keep focus so you'll know when you find a property that will work for all your needs and wants.

Loan pre-approval
Gather financial information the lender will request and apply for pre-approval. Educate yourself on the lending process and what steps will be required.

Credit data
Check your credit and correct any credit problems you may have before the lender gets your credit report.

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