Most foreclosures listed on the MLS can be financed with a normal mortgage; the courthouse auction is the cash exception. A foreclosure listed on the MLS, usually owned by a bank, servicer, or fund by that point, finances like any other purchase as long as the property is livable and meets the loan's condition standards. From the lender's side, the main requirement is a valid seller with the authority to sign the deed, and an institution has that authority the same way an individual seller would. Foreclosures bought directly at the courthouse-steps auction generally require cash or fast access to it, such as a hard money loan, because the timeline and terms do not accommodate standard financing. The other limit is condition. A heavily distressed property that needs major work may not qualify for standard conventional or government financing, since those are written against a home in livable shape. For those, renovation loan products (an FHA 203k or a conventional rehab loan, for example) roll the repair cost into the mortgage; confirm the current program requirements before you count on one. Short version: most listed foreclosures finance normally, auction buys usually need cash, and a true fixer may push you into a rehab loan. If you want to know which path your target property fits, that is the kind of scenario we map out on the free Roadmap conversation.