When owners fail to pay their mortgage, their property is often auctioned and occasionally the bank itself, or HUD (for FHA loans), or VA (for VA loans) becomes the property owner. They typically resale it in "as is" condition and the asking price is an apraisal value. To purchase HUD or VA properties you need to contact a HUD or VA certified broker. Usually bank owned properties are listed in MLS and any agent can sell them. Those properties are often a good delal. Please contact me for more information: ida@freimer.com.