Your Guide to Buying Bank-Owned Foreclosed Homes
See who sells bank-owned homes, how foreclosure auctions work and how to pay for a home that needs work. If you are behind on your own mortgage, find out what your options are and how much time you have.
Where to Start
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Buy a Bank-Owned Home
See which banks and credit unions are selling foreclosed homes, where they list them and how to make an offer they will accept.
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Facing Foreclosure
Learn how much time you have, what your lender has to offer you and how to stop a sale in your state.
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Finance and Invest
Compare hard money, DSCR and renovation loans, then run the numbers on a deal with free calculators.
Browse by Topic
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Bank REO Directory
Which banks, credit unions and servicers hold foreclosed homes, how much, and who sells them.
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Foreclosure Law
The foreclosure process and timeline in every state, with the statute behind each step.
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Tax Lien and Deed Sales
Tax lien and tax deed sale rules by state, plus county pages with dates and deposits.
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Auction Platforms
How the online auction sites work, what they charge buyers, and how they compare.
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Hard Money and Financing
Hard money and private lenders by state for buying and fixing distressed property.
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Foreclosure Glossary
Plain-English meanings of the legal terms used before, during and after foreclosure.
Look Up a State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Questions People Ask
Can You Buy a Foreclosed Home with an FHA Loan?
Yes, if the home meets FHA property standards and you will live in it. A home that needs work can be bought with an FHA 203(k) renovation loan, but an FHA loan cannot be used at a cash auction.
How Long Does Foreclosure Take?
From the first missed payment, most foreclosures reach a sale in about 5 months in the fastest states and 2 years or more in the slowest. Federal rules bar the first filing until a borrower is more than 120 days behind.
How Can You Stop a Foreclosure?
You can usually stop one by catching up, getting a repayment plan, forbearance or a loan modification, refinancing, selling, or filing bankruptcy. Acting early matters most, because a complete help application sent more than 37 days before a sale blocks that sale.
Will a Bank Pay Closing Costs on a Foreclosure?
Often it will, up to the limit your loan allows. FHA allows the seller to pay up to 6% of the price, and Fannie Mae allows 3% to 9% on a main home depending on your down payment.
Do Owner-Occupants Get the First Chance to Buy?
On many government-backed foreclosures, yes. Fannie Mae and Freddie Mac give people who will live in the home 30 days before investors can bid, and HUD gives them 15 days on homes that qualify for FHA loans.
How Long After a Foreclosure Can You Get a Mortgage?
Usually about 3 years for an FHA loan, about 2 years for a VA loan and 7 years for a Fannie Mae loan, or 3 years with documented extenuating circumstances.
How Buying a Bank-Owned Home Works
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Find the Seller
Banks, credit unions, HUD, Fannie Mae and auction sites each sell foreclosed homes their own way. Start by learning who holds homes where you want to buy. Bank REO directory
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Line Up the Money
Banks want proof you can close. Get preapproved, or have a proof of funds letter ready if you are paying cash or using a private lender. Financing options
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Make an Offer
Bank-owned homes are sold as is, with the bank's own contract and deadlines. Know what the seller expects before you bid. What banks require
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Fix It Up and Move In
Many foreclosures need repairs. A renovation loan can roll the cost of the work into your mortgage. Renovation loans