How to Buy Foreclosed Homes at Auction How to Buy Foreclosed Homes at Auction by Robert Donovan and Stephanie A. Chisholm First-time home buyers with tight budgets take heart. By finding a foreclosed property, you can often buy a lower-cost house with little cash down.
Foreclosures are simply homes that have been repossessed by the bank or by a government agency.
Most real estate agents have listings of foreclosures. HUD places its own for sale signs on open-listed homes as soon as the contractors have completed their initial inspection. Once a buyer's contract has been accepted, a sold sign is placed in front of the property. Making an offer on a foreclosure differs from making an offer on a typical property. HUD and VA homes require a written bid, and except for those homes offered through exclusive listing contracts, HUD sells homes only through sealed offers.