A property that has been foreclosed is just like any other property, it is owned by someone who bought it at the auction on the courthouse steps and is owned by someone or maybe the bank has it now. Now it's a bank owned home or REO property and the bank is selling it. Dealing with a bank as the seller can be different since the bank does not think like you or I and they don't have their personal money in it like we would. They can be stubborn and refuse to fix things and the deed you get will be a special warranty deed. Your agent will be able to guide you through the process.