Foreclosure Fixer-Uppers Ready for Their Next Chapter: 5 Abandoned Homes Offering a Bargain Deal to Buyers

When a listing says a property is being foreclosed on, some buyers see it as a red flag—but savvy investors know that it can actually be a sign of opportunity to capitalize on a potential deal.

A foreclosure simply means the a buyer was unable to pay the mortgage, so the lender took over ownership of the property and is now trying to sell it.

Because banks are often eager to unload these foreclosure properties, they are typically not looking to make a large profit on the sale, but rather break even with an asking price that is most often the sum of the remaining mortgage, plus interest, lawyer fees, and penalties.

On average, this ends up totaling about 15% below the home's actual value—and if you want to buy a foreclosure, you'll find it often sells for less than asking price.

There are certainly many things to take into consideration when buying a foreclosed property. With proper research, you will be able to find out how long the property has sat vacant and whether there is any structural damage or significant interior issues like mold requiring attention.

One of the best ways to ensure what you are in for is to add an inspection contingency to the purchase and sale agreement and hire a professional home inspector who will be able to pinpoint major repairs and provide an estimate. If it comes back higher than you expected, you can back out of the deal without losing your deposit.

From California to Pennsylvania, we have rounded up five homes seeking a real estate resurrection.

1. 2010 E Pinecrest Rd, Spokane, WA

Price: $869,000

Storybook-inspired brick castle: At first glance, it is unclear how long this stone-and-brick residence designed by architect Glen Cloninger has not been lived in, but buyers are expected to do their due diligence to find out more.

Built in 1994, the 3,050-square-foot home boasts just two bedrooms along with an office that could easily be converted into a third bedroom. A "chef-worthy" kitchen offers maple cabinetry, stone countertops, and modern appliances.

French doors upstairs open up to a primary suite with fireplace, steam shower, and soaking tub. A sauna can be found on the lower level. There is also a brick patio with fire pit designed for entertaining and a three-car garage.

The property originally hit the market in August 2024 for $1,299,990 and was last sold in 1998 for $165,000.

2. 1638 W 51st St, Los Angeles, CA

Price: $599,900

Craftsman bungalow: Built in 1913, this two-bedroom residence is seeking a buyer to bring some TLC to restore its former glory, but there are some things to consider.

Offering just 1,000 square feet of space, the property is said to have been "modified without permits," has code violations, and is being sold as is, according to the listing.

While tax records show the property as having two bedrooms and one bathroom, it was converted into three bedrooms and two bathrooms on the first floor, with an additional three-bedroom apartment found upstairs without pulling permits. There is also a partly converted two-car detached garage.

The property last traded hands in February 2006 for $400,000.

3. 3301 W Douglas Blvd, Chicago, IL

Price: $244,900

Two-unit structure: This brick investment property needing a "full rehab" is being sold as is.

Built in 1899, the historical structure boasts nine bedrooms found throughout the two units. Period details include arched windows and doorways, stone columns, exposed beams, original woodwork, and built-in cabinetry.

It would be ideal for developers or "savvy owner-occupants seeking space and architectural charm."

The property was last sold in October 1994 for $85,000.

4. 543 E Locust Ave, Philadelphia, PA

Price: $179,900

Twin townhome: Here's the chance for an investor to breathe life back into this four-bedroom residence.

Located in Philadelphia's Germantown neighborhood, the 100-year-old structure is full of historic details. You can see the home's potential throughout the gutted space that features exposed brick walls, hardwood floors, a bay window, and fireplace.

A full-floor primary suite can be found on the third level. The shared driveway leads to a detached one-car garage.

The property last traded hands in May 2023 for $373,000.

5. 5126 Ganymede Dr, Austin, TX

Price: $381,650

Stone home: This single-level residence was built in 1984 but has received some updates over the years.

The three-bedroom house boasts an open 1,301-square-foot floor plan with a modern kitchen featuring stainless-steel appliances and quartz countertops. A spacious living room with a vaulted ceiling and fireplace has French doors that open to a covered patio.

Flooring has been exposed, offering a blank canvas for a new buyer to update. An in-ground pool needing an overhaul can be found in the fenced backyard.

The property, which last traded hands in 2023 for an undisclosed sum, "may qualify for seller financing."