The most obvious advantage of buying a foreclosed house is that the price is usually below market value. On top of that, the closing tends to be relatively quick. Although many foreclosures need repairs, if you rehabilitate a property, you may be able to sell it at a profit. The downsides: You often don’t get to see the inside of the home before you buy, and it could need a lot more work than you expected. The market for foreclosures is also very competitive, and foreclosure auctions usually require you to pay cash.