A bank-owned foreclosed home, otherwise known as an REO (real estate owned) property, is purchased with a REALTOR®, and the home is listed. The home is sold in "As-Is/Where-Is" condition, and a home inspection is recommended. A title is provided, liens are paid, and closing costs are prorated to the date of closing as with normal residential real estate closings.
If you are purchasing a condo, the HOA may bill for the unpaid payments, six months before the foreclosure date. The home may also be purchased using a REALTOR® at an auction. The bank holds auctions with experienced auction companies.