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Not REOs, pre-foreclosures.
Get your county's legal news where the lenders have to publish the Notices of Default.
Check the Deed office (Registrar of Deeds) or the Assessor's office -- they will have the homeowner's Name and Address.
Put your work uniform on and knock on his door. Remember -- you are just a tradesman or a shop worker looking to make a deal with him. You like his house and want to fix it up and live there -- be humble -- it works when you make the mark comfortable. Offer him some cash and a way out. People in foreclosure want out or another angle is to refinance.
The problem with REOs is the bank bid the foreclosure balance at the Sheriff's Sale -- usually at an inflated value with back interest and loan penalties plus the principal balance.
So, the bank has a home that is a REO, that on the books, as bid at $200K with the POS only worth $110K so you have that conundrum -- the bank officer or the bank's real estate broker/agent has a fiduciary duty to come as close as they can to the $200K bid. You are negotiating from weakness at this point.
During pre foreclosure the homeowner and the mortgage holders are suffering -- you can offer a solution to relive their dilemma -- you are the 'good guy'. You have some control of the negotiation. The "Art of the Steal" ;)
These are the hardest deals to make but the most profitable.
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