Foreclosure Multi Family Homes for Sale

Multi family homes in foreclosure are properties that have been seized by a mortgage lender or lien holder due to debt owed by the borrowing owner.

Banks, mortgage lenders, and the U.S. Department of Housing and Urban Development (HUD) reclaim thousands of foreclosure homes every year.

Most of these properties end up for sale on the commercial market as lucrative investment opportunities for eagle-eyed commercial real estate buyers.

There are many resources to use when seeking out multi family homes in foreclosure. In this post, we’ll run through the different options, and discuss their benefits and drawbacks.

Where to Find Foreclosure Multi Family Homes for Sale

Whether you’re looking for an entire apartment building, a mobile home park, or a duplex, there are plenty of online platforms to choose from.

One often overlooked option is to search off-market and reach out to real estate owners even before their property is foreclosed on.

Find Multi Family Pre Foreclosures Off-Market With Reonomy

Even before a property goes into foreclosure, Reonomy can help you identify the owner and their contact information, allowing you to get in touch directly and make an offer before the larger industry players get involved.

The platform’s advanced search capabilities allow you to filter properties by pre foreclosure status, an auction date, or both if you prefer.

Reonomy Search Pre Foreclosures by Pre Foreclosure Category

Reonomy lets you look for pre foreclosures in a number of multi family property sub-types such as student housing, senior housing, mobile home parks, duplex, triplex, and more.

You can even further customize your search results by adding multiple building and lot specifications, like number of units, building area, lot area, year built, and so on.

You can choose to search for your desired type of pre foreclosure multi family property in any state, city, county, or ZIP code in the United States.

Search Real Estate Listings

There are a number of platforms featuring multi-unit property listings for sale. A few of the more notable ones are in the list below: posts hundreds of foreclosed multi family listings on a daily basis.

The site has information on over two million properties in foreclosure, making it a great source to start your search for a multi family investment.

In addition, offers informational resources that can help both new and seasoned investors through the foreclosure property purchase process. is another great platform where you can find foreclosed real estate for sale.

Specializing in the multi family market, the site features townhouses, condos, new homes, and a range of other multi family properties. Homepage Screenshot can also connect you with reputable real estate agents, who can help you find the right multi family property for your investment needs.


LoopNet is one of the top resources for commercial real estate brokers, investors, and anyone else looking to buy or sell property.

The site features thousands of multi family listings, along with a number of other real estate categories.

While LoopNet does not have a foreclosure-specific search, it does include listings for bank-owned properties, which is synonymous with foreclosed properties.

In addition to the textual search, the platform also has an interactive aerial map that you can use to draw your target search location for multi family properties.

By creating an account, you can easily save past searches and listings you are interested in.

Foreclosure Support Homepage Screenshot

Foreclosure Support is another popular listings platform for sourcing foreclosed multi family properties for sale. The site features one million foreclosure properties across the United States, which are easily searchable through an interactive map.

In addition, Foreclosure Support offers 24/7 customer service to its platform users.


Zillow is one of the best-known online listing platforms for residential properties.

You can search for foreclosure properties based on listing type, price, lot size, HOA fees, year built, and square feet.

In Florida alone, Zillow lists more than 20,000 properties in foreclosure or pre foreclosure status. You can organize these results based on price, number of bedrooms, lot size, and more.


Realtor has thousands of multi family listings, including properties in foreclosure. You can search for foreclosed multi family homes based on price, size, and other key property features.

Realtor also provides its users with extensive data on the multi family market in each state. Some of the available information includes median listing price, average square footage, and the most popular neighborhoods.

US Department of Housing: the Federal Housing Administration

When considering where to look for multi family properties, the US Department of Housing may not be at the top of your list.

HUD’s Federal Housing Administration (FHA) insures mortgages and direct loans on multi family properties.

When a property owner defaults on their mortgage, the HUD swoops in and forecloses the property. You can find HUD multi family properties for sale at the time of foreclosure.

You can subscribe to the HUD’s Multifamily Property Disposition Mailing List to receive an electronic invitation to bid on multi family properties as soon as they appear on the platform.

The Value and Drawbacks of Buying Foreclosure Real Estate

Multi family homes are one of the most popular asset categories among commercial real estate investors.

Due to the unfortunate nature of foreclosure however, the values and drawbacks of investing in this type of properties can sometimes be a hot button topic.

The Value

Multi family homes in foreclosure often sell far below market prices as lenders typically prioritize covering outstanding debt over maximizing profits.

Because of this, foreclosures can deliver great profit margins to investors – distressed multi family properties typically offer a below-market value of 30% to 60%.

Even aside from profits, the multi family market is one of the strongest asset classes to invest in.

Everybody, of course, needs a home, but current market trends such as millennials choosing to rent and baby boomers downsizing their homes, should keep the demand for rented housing especially strong in the foreseeable future.

The Drawbacks

While distressed multi family properties may seem like a winning investment, you need to carefully analyze the ROI and the amount of work that you will need to put in to achieve that return.

In general, foreclosure multi family homes are often very demanding from an ownership standpoint.

This type of properties typically requires extensive repairs and renovations that can significantly increase your expenses and drastically slash your ROI.

Aside from taking the time to carefully calculate key property investment metrics like the cap rate and cash-on-cash return, it is very important to also properly estimate the additional costs entailed with investing in a foreclosed multi family property.

The Main Takeaway

Foreclosed multi family property is one of the most lucrative real estate investment opportunities on the commercial market.

Different multi family properties for sale will appear on different listings platforms. The more platforms you browse or subscribe to, the more multi family offerings you will have at your fingertips.

When you come across foreclosed multi family homes that you are interested in, remember to always carefully evaluate the investment from all aspects before you pull the trigger on the sale.

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