Redfin

MARCH 4, 2025

From finding houses to tour and what financing options you have, theres a lot to learn about buying a home in foreclosure. If the auction accepts financing, make sure you have a pre-approval ready. If possible, consult a real estate attorney to be sure you understand the realities of the auction and the transaction rules.

Pre-approval

HomeLight

MAY 17, 2022

Real-estate owned (REO) homes. A real estate-owned (REO) home has been put up for sale at a foreclosure auction — but it didn’t sell. Now, the bank or another lender owns it and has listed it on the open market. Although sold “as is,” you can typically still get an inspection.

Inspection

HomeLight

SEPTEMBER 1, 2020

The home is now bank-owned (sometimes also called REO, or “real estate owned”). Make sure the offer includes any important contingencies, such as an inspection contingency. Step 9: Order an inspection. If the home fails to sell at the auction, the bank or lender takes possession of the house.

Banks

HomeLight

AUGUST 31, 2020

Here, we break down the major pros and cons of buying a bank-owned property to demystify the process and prepare potential buyers. What is a bank-owned home? A bank-owned home, also known as “real estate owned” (or REO for short), refers to properties that have been foreclosed with the ownership transferring to the bank or lender.

Banks