Both of these departments issue mortgage loans. When the holders of these loans default on their payments, the agencies take possession of their homes. Finding HUD and VA homes is relatively easy. VA homes are a little trickier. The agency's Chicago office lists its foreclosed properties every other Friday in the Chicago Tribune.
Buyers can also call both agencies to get information on foreclosed properties.
But finding a home listing with HUD and the VA is just the beginning. Go through the Yellow Pages and call on the agents you find there. Odds are, most of them are already registered. Your agent will then submit a bid to either HUD or the VA for a property that interests you. These foreclosure listings contain a date at which you must provide a sealed bid for a certain property.