Foreclosure house means that a property is sold to pay off the debts because borrower was not able to pay loan amount on time. If the borrower does not pay the debts on time specified in the mortgage contract, lender can sell the property to pay off the loan. Most of the foreclosure properties are sold at reduced value because lender wants to recover his amount soon. Some foreclosed houses are sold through property auction. Some foreclosed properties are in excellent condition; others need a great deal of repairs. It is important that you inspect the property prior to placing a bid. Also try to check the value of comparable homes to know if the price is reasonable. Listings of foreclosed homes are published in newspapers, Internet, newsletters and real estate magazines.