Hello Kathleen. Unless you buy at a trustee sale (on the court house steps), you most likely don't have to pay cash. Foreclosed homes are mostly sold through the MLS or large auction houses and they usually allow financing through a loan. If I were you, I would not attempt to buy a house at a trustee sale. Aside from having to come up with cash, you also don't have an opportunity to inspect the house before you buy, which is a risky undertaking. Last but not least, the opening bid at trustee sales is many times more than what the house is worth.