How to buy a house in foreclosure
You can buy a house in foreclosure at three points. Before the sale, you buy from the owner. At the sale, you bid at the trustee or sheriff's auction, usually with cash. After the sale, you buy the bank-owned or HUD home through an agent, often with a regular loan.
Updated November 2026. A plain-language guide, not legal advice.
- Before the sale
- Buy from the owner, with the lender's approval if it's a short sale
- At the sale
- Bid at the auction, as-is, with cash or certified funds
- After the sale
- Buy from the bank or HUD, usually with an inspection
- Where you find them
- Public notices, auction calendars and listings
Step by step
The order most houses in foreclosure go in. Your county's rules and the deal in front of you can change it.
See houses in foreclosure on the map
Pick the stage that fits your money and time
Buying from the owner before the sale takes patience and a careful approach. Auctions move fast and usually need cash. Bank-owned and HUD homes are listed like other homes, so a regular mortgage often works, but more buyers compete for them.
Find the homes
In Nevada and Utah, the first public sign is usually a notice of default recorded with the county. In Texas, it's the notice of sale, posted at least 21 days before the sale and filed with the county clerk. Bank-owned homes show up in regular listings, and HUD homes are listed on HUD Home Store.
Line up the money before you look closely
Get a mortgage pre-approval for owner and bank sales. For auctions, read the sale terms in the notice and have the funds ready in the form the trustee accepts.
Check the title and the house
Ask a title company what loans, taxes and liens are on record. Some debts can stay with the house after a foreclosure sale. Inspect when you can; at most auctions you can only see the outside.
Make your offer or bid
Before the sale, sign a written contract with the owner and close before the sale date. At the auction, confirm the sale is still on that morning and stop at your number. For a bank-owned home, your agent sends the offer and the bank adds its own forms. HUD homes take bids through a HUD-registered broker.
Close and get the keys
Close through a title company. If someone still lives in a home you bought at auction, getting possession follows your state's legal process, and some buyers offer cash for keys to speed it up.
What can go wrong
Debts that come with the house
A foreclosure sale usually clears loans recorded after the one being foreclosed, but property taxes, some HOA amounts and senior loans can stay. A title search is the only way to know.
Repairs you couldn't see
Auction homes are sold as-is, usually without an inside look. Bank-owned homes are also often sold as-is, even when you can inspect.
Dates that move
Owners catch up on the loan, lenders postpone sales and banks take time to answer offers. Plan for a deal to change or fall through.
Who you need
Agent who works foreclosures
Sees bank-owned and HUD homes the day they list, and knows which ones sat.
Ask them: How many bank-owned or auction homes did you close last year?
Lender with fast proof of funds
Auctions and bank sellers want proof you can close before they take you seriously.
Ask them: How fast can you send a proof-of-funds letter, and can you close in 10 days?
Title company
Finds the liens that survive a sale before they become your problem.
Ask them: Can you run a title search before the auction date?
Real estate attorney
Reads auction terms, deeds and occupant rules in your state.
Ask them: What happens if someone is still living in the home after I buy it?
Official sources: CFPB, how to avoid foreclosure, Texas Property Code ch. 51, Nevada NRS ch. 107, HUD Home Store
Experts we work with
Local agents who work distressed and off-market homes, and a lender to call before you bid. Ask through us and we'll introduce you by email.
Robert Meche
Broker and owner, SWR Group at Keller Williams
Collin County, TX, Dallas County, TX, Denton County, TX, Cooke County, TX
Buying somewhere else? Tell us the county and we'll point you to someone.
Recommended lender
Cole Boren
Branch Manager, CMG Home Loans
Cole has nearly three decades in mortgage lending. He helps buyers plan a purchase around the bigger picture: the cash they keep, the home they own now and the timing of the move.
- What you can qualify for now
- Buying before you sell
- Which loan fits the home you want
Cole Boren, NMLS #384591. CMG Home Loans, NMLS #1820. Equal Housing Opportunity. Licensing varies by state. Check his NMLS record.
Real Estate Intel recommends people we work with. You're free to use any agent or lender.
Questions buyers ask
Is a house in foreclosure cheaper?
Sometimes, but not always. Repairs, back taxes, liens and the time it takes can eat up a lower price. Compare the full cost with recent sales nearby before you decide.
Can I use a mortgage to buy a foreclosure?
Usually yes for a home bought from the owner, the bank or HUD, as long as the house qualifies for the loan. Auctions usually want cash or certified funds on the sale's terms.
Where do I find houses in foreclosure?
Default and sale notices are public records at the county. Auction calendars list upcoming sales, bank-owned homes appear in regular listings, and HUD homes are on HUD Home Store. Our county pages and deals map track the new ones each week.
How long does it take to buy a foreclosure?
An auction purchase is decided on sale day, with payment due on the sale's terms. Owner and bank sales follow a normal closing timeline, plus extra time when the lender or bank has to approve.
Get your county's new houses in foreclosure every week
New default notices, sale dates and homes that went back to the lender. Free, one email a week.