Foreclosure listings are usually lender-owned properties due to a mortgage default.  These listings are usually sold as-is, which means the owner makes no representations about the house and will usually pay for no repairs for things discovered during due diligence.  These properties are attractive because they are priced below what one would expect to pay, as the lender wants to sell the property quickly.  Due diligence is very important to this type of purchase, as the buyer needs to make sure that the purchase price plus any repairs will still leave the property being worth more than the investment.