{"id":31208,"date":"2023-09-27T04:41:03","date_gmt":"2023-09-27T11:41:03","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=31208"},"modified":"2026-04-13T09:19:18","modified_gmt":"2026-04-13T16:19:18","slug":"buyer-buying-foreclosed-homes-for-dummies","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-buying-foreclosed-homes-for-dummies\/","title":{"rendered":"Buying Foreclosed Homes for Dummies in 11 Steps Even You (Yes, You!) Can Do"},"content":{"rendered":"<p>Real estate hacks for buying and selling your way to wealth can be hard to find. Maybe the allure of a quick win or the challenge of scoring a good deal is too good to resist. Is buying a foreclosed house for dummies a hack that would work for you? Here are the 11 steps to buying foreclosed homes for dummies.<\/p>\n\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">Find a top real estate agent near you<\/h3>\n                        <p>We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes just two minutes to match you with the best real estate agents, who will contact you and guide you through the process.<\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/find-agent\/quiz\/buyer?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Get Started<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n\n<div id=\"section--1\" data-toc-header=\"Step 1: Be clear on why you want to buy a foreclosure\" data-toc-type=\"undefined\"><\/div>\n<h2>Step 1: Be clear on <em>why<\/em> you want to buy a foreclosure<\/h2>\n<p>Generally, lenders will take much less than top dollar for a foreclosure, which is good news for anyone looking to score a deal on real estate. But although you might pay less than you would on the open market, closing a sale on a foreclosure can take a long time, and properties may be sold <a href=\"https:\/\/www.homelight.com\/blog\/as-is-home-sale\/\">as-is<\/a>, without a <a href=\"https:\/\/www.homelight.com\/blog\/mandated-disclosures-real-estate\/\">seller\u2019s disclosure<\/a>. So there\u2019s no guarantee on the home\u2019s condition, especially if it has been vacant for some time. It\u2019s not uncommon to get stuck with major repairs.<\/p>\n<p>Even so, maybe this home makes sense as an <a href=\"https:\/\/www.homelight.com\/blog\/buyer-is-real-estate-a-good-investment\/\">investment<\/a> because it has attributes that are hard to come by or it\u2019s in that perfect neighborhood near good schools and sought-after amenities. But if you\u2019re not an experienced investor who has a background in fixing up homes to <a href=\"https:\/\/www.homelight.com\/blog\/buyer-flip-house\/\">flip<\/a> or rent, buying a foreclosure might not be a strategy you want to tackle on your own immediately. There are a lot of other ways to <a href=\"https:\/\/www.homelight.com\/blog\/buyer-is-real-estate-a-good-investment\/\">invest in real estate<\/a>.<\/p>\n<section class=\"building-block bb-type-default bb-agent-quote bg-none\" id=\"bb-1\"><div class=\"body block\"><div class=\"container-fluid\"><div class=\"block-content\">            <blockquote class=\"post-blockquote\">\n                <q>It\u2019s important to know the potential buyers may have a whole lot of work ahead of them because the homeowners likely didn\u2019t have the funds to keep the property in good shape for the past several years.<\/q>\n                                    <div class=\"contributors\">\n                        <ul class=\"list\">\n                            <li>\n                                <div class=\"inner\">\n                                    <div class=\"opener\">\n                                        <div class=\"avatar\">\n                                                                                            <img decoding=\"async\" src=\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/874166\/normal_obj382geo306pg1p4.png\" alt=\"Mary Stewart\">\n                                                                                    <\/div>\n                                        <div class=\"info\">\n                                            <strong>Mary Stewart<\/strong>\n                                            <span>Real Estate Agent<\/span>\n                                        <\/div>\n                                    <\/div>\n\n                                    <div class=\"contributors-detail-modal\">\n                                        <div class=\"holder\">\n                                            <a href=\"#\" class=\"icon-close close\">\n                                                <span class=\"screen-reader-text\">Close<\/span>\n                                            <\/a>\n                                            <div class=\"top\">\n                                                <div class=\"avatar\">\n                                                                                                            <img decoding=\"async\" src=\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/874166\/normal_obj382geo306pg1p4.png\" alt=\"Mary Stewart\">\n                                                                                                    <\/div>\n                                                <div class=\"info\">\n                                                    <strong>Mary Stewart<\/strong>\n                                                                                                            <span>Real Estate Agent at Compass RE Texas<\/span>\n                                                                                                        <div class=\"rating\">\n                                                                                                            <\/div>\n                                                                                                    <\/div>\n                                            <\/div>\n                                                                                            <div class=\"btm\">\n                                                    <ul class=\"exp-list inline-list\">\n                                                                                                                    <li>\n                                                                <span>Years of Experience<\/span>\n                                                                <strong>46<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Transactions<\/span>\n                                                                <strong>400<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Average Price Point<\/span>\n                                                                <strong>$363k<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Single Family Homes<\/span>\n                                                                <strong>362<\/strong>\n                                                            <\/li>\n                                                                                                            <\/ul>\n                                                <\/div>\n                                                                                    <\/div>\n                                    <\/div>\n                                <\/div>\n                            <\/li>\n                        <\/ul>\n                    <\/div>\n                            <\/blockquote>\n        <\/div><\/div><\/div><\/section>\n<div id=\"section--2\" data-toc-header=\"Step 2: Understand the different types of foreclosures\" data-toc-type=\"undefined\"><\/div>\n<h2>Step 2: Understand the different types of foreclosures<\/h2>\n<p>Before you get started down the road toward buying a foreclosure, it\u2019s good to know the different types of sales you might encounter.<\/p>\n<h3>Preforeclosure<\/h3>\n<p>A <a href=\"https:\/\/www.nolo.com\/legal-encyclopedia\/what-does-pre-foreclosure-mean.html\">preforeclosure<\/a> means the homeowner has stopped making payments or fallen behind on their mortgage payments. It is the first step (but a very serious step) in the foreclosure process.\u00a0 A <a href=\"https:\/\/www.homelight.com\/blog\/buyer-short-sale\/\">short sale<\/a> is a type of preforeclosure; when a homeowner stops making payments on their mortgage <em>and<\/em> owes more on the home than the house is worth in the current market, then they will need to sell the house for less than they owe, and the lender will be \u201cshort\u201d on the amount of money they accept in the sale.<\/p>\n<p>However, unless homeowners can come current on their mortgage or negotiate a loan modification, they will lose their home. Depending on the state where the property is located, <a href=\"https:\/\/www.quickenloans.com\/learn\/pre-foreclosure\">mortgage preforeclosures<\/a> can range from a few weeks to a year or more.<\/p>\n<p><a href=\"https:\/\/www.homelight.com\/agents\/mary-stewart-tx-0231311\">Mary Stewart<\/a>, a top real estate agent in <a href=\"https:\/\/www.homelight.com\/sugar-land-tx\/top-real-estate-agents\">Sugar Land<\/a>, Texas, says that if the owners can prove there\u2019s no way they can make a payment, the property can go to preforeclosure. \u201cBut it takes literally months. I mean, it takes probably, at the minimum, three to four months to get a short sale through.\u201d<\/p>\n<h3>Foreclosure<\/h3>\n<p>A <a href=\"https:\/\/www.thebalancemoney.com\/foreclosure-explained-315702\">foreclosure<\/a> means the house has been repossessed by the lender and is typically being put up for auction. A home isn\u2019t considered repossessed until a foreclosure becomes final. However, if the homeowner manages to catch up on any missed payments before the final deadline, <a href=\"https:\/\/www.homelight.com\/blog\/can-i-sell-my-home-if-it-is-in-foreclosure\/\">selling a house in foreclosure<\/a>\u00a0could be voided.<\/p>\n<p>If the home does make it to auction, you probably won\u2019t be able to get an inspection of the inside of a property before bidding, as sales of <a href=\"https:\/\/www.lendingtree.com\/home\/mortgage\/buying-foreclosed-home\/\">foreclosure properties are often sold as-is<\/a>. Some auctions do allow interior inspections, so stick with those auctions if you fear buying a dilapidated and rundown property.<\/p>\n<p>Stewart says that foreclosures may not take long to turn over if the mortgage company has already listed the property with an agent. \u201cBut it\u2019s important to know the potential buyers may have a whole lot of work ahead of them because the homeowners likely didn\u2019t have the funds to keep the property in good shape for the past several years.\u201d<\/p>\n<h3>Real-estate owned (REO) homes<\/h3>\n<p>A <a href=\"https:\/\/www.homelight.com\/blog\/buyer-reo-homes-in-my-area\/\">real estate-owned (REO)<\/a> home has been put up for sale at a foreclosure auction \u2014 but it didn\u2019t sell. Now, the bank or another lender owns it and has listed it on the open market.<\/p>\n<p>Lenders may prepare the property for sale and determine a listing price, which typically will be based on <a href=\"https:\/\/www.homelight.com\/blog\/pricing-your-home-to-sell\/\">current market values<\/a>, so don\u2019t expect a tremendous deal. Although sold as-is, you can typically still get an inspection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a foreclosed home can be a way to buy cheap property, but it comes with risks. Read our guide to buying foreclosed homes for dummies.<\/p>\n","protected":false},"author":306,"featured_media":38745,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,629,635],"tags":[],"class_list":["post-31208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-home-financing","category-auctions-foreclosures"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>A Step-By-Step Guide to Buying Foreclosed Homes for Dummies<\/title>\n<meta name=\"description\" content=\"Buying a foreclosed home can be a way to buy cheap property, but it comes with risks. Read our guide to buying foreclosed homes for dummies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/buyer-buying-foreclosed-homes-for-dummies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buying Foreclosed Homes for Dummies in 11 Steps Even You (Yes, You!) Can Do\" \/>\n<meta property=\"og:description\" content=\"Buying a foreclosed home can be a way to buy cheap property, but it comes with risks. Read our guide to buying foreclosed homes for dummies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/buyer-buying-foreclosed-homes-for-dummies\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-27T11:41:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-13T16:19:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2023\/09\/Buying-Foreclosed-Homes-for-Dummies.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Kathryn Pomroy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kathryn Pomroy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A Step-By-Step Guide to Buying Foreclosed Homes for Dummies","description":"Buying a foreclosed home can be a way to buy cheap property, but it comes with risks. 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She is proficient at researching, fact-checking, editing, reviewing and updating all forms of content, and pushing the envelope on authoring engaging and inspiring text. A former real estate agent, Kathryn understands the market, taxes, homeownership, insurance and so much more. Kathryn holds a degree in Journalism and lives in northern Minnesota.","sameAs":["https:\/\/www.linkedin.com\/in\/upnorthwriter\/"],"url":"https:\/\/www.homelight.com\/blog\/author\/kathryn-pomroy\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/31208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/306"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=31208"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/31208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/38745"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=31208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=31208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=31208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}