Real estate foreclosure refers to a bank repossessing a property that they have lent the money on. Until a property is completely paid off, the bank holds the rights to the title. As long as the person who owns it pays their bills and pays them on time, the ownership lies in the individual.
When the individual starts missing payments or stops payments completely, the bank has the right to repossess the property. It is similar to repossessing a car only to a much larger degree. They will give the owner enough notice and time to rectify the situation, but if they do not, the property gets turned over to the bank.

If you are in the real estate market for a property, you should look into foreclosed homes. There is a lot of money in buying, fixing and selling foreclosed homes. Or, if you are looking for a personal property to buy and occupy, you can get a great deal on foreclosures.

How to Buy a Real Estate Foreclosure

There is really only a few ways to buy a real estate foreclosure. You have to find out where the bank is auctioning it off and then go bid. Lists with addresses are readily available so you can go and see the property before you buy. You cannot necessarily go inside, but you can see the neighborhood as well as the outside of the house.