You can often buy foreclosed homes at bargain prices from banks desperate to sell the property. Prices can be low, as the bank or seller may only want to receive the remaining principal of the previous resident's mortgage. However, these properties can come with hidden costs. Many foreclosure auctions sell a home as is, with no inspections or mortgages allowed, meaning you'll have to pay the money up front. The former owners may have been behind on maintenance, and the house may be in disrepair.