A foreclosed property is one that has been through the foreclosure process and has been “taken back” by the lien holder of the mortgage.
These sales can be safe if done correctly. You would want an experienced Realtor, home inspector and attorney to assist you with the transaction. Foreclosed properties are often quite distressed, needing a great deal of repairs just to be livable. However, occasionally you will run across a home in need of just painting and a little cleaning.
Although there are exceptions, for the most part the lender selling a foreclosure will not accept a “home-sale contingency.” Occasionally they will accept a “home-close contingency.” This makes the transaction much more of a challenge for a move-up homebuyer who needs to sell their current home to purchase another.