Buying a foreclosed house can be a good investment because it's possible to buy a marketable property for about 20 percent under the going rate for a given neighborhood, explains Bankrate. However, it's important to inspect the condition of a foreclosed house carefully and to understand the process.
No one should buy a foreclosed house without a full inspection, since previous owners may have neglected to maintain the home's infrastructure or may even have trashed the house before leaving, as Interest.com points out. A real estate agent can help prospective buyers get access to the home before making an offer. Potential buyers of foreclosed homes should also calculate the costs of getting the house ready for market before they make an offer.