09/04/2026
Buying a Foreclosed Home: How a Foreclosure Sale Works
Buying a foreclosed home can be a good way to score a deal while hunting for real estate. A foreclosure is a house whose owners were unable to pay the mortgage or sell the property. As a result, the real estate lender assumed ownership and is now trying to sell it to recoup some of its costs, typically for an attractive price.
As of 2026, foreclosures are now about as common as they were in 2019, but well below the levels seen during the Great Financial Crisis.
Currently, the national foreclosure start rate stands at 0.24%, roughly matching the 2019 benchmark, according to Mortgage Bankers Association data reported by Moody's.
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https://www.realtor.com/advice/buy/what-does-buying-a-foreclosed-home-entail/