A foreclosed home is one that’s usually owned by a bank or lender. Lenders can foreclose on a home when homeowners stop making their regular monthly mortgage payments, meaning that they take over ownership of that residence.

Banks and mortgage lenders will then try to sell these homes, often at lower prices or with a smaller down payment. And that’s the main benefit of buying a foreclosed home: You might nab a residence that would’ve otherwise been out of your price range.

Although there are certainly risks that come with buying a foreclosure, the process itself isn’t much more complicated than the typical home buying experience, and buying the right foreclosed property can get you a home at a bargain price.

Foreclosed properties can be one of the best ways to get a cheap property, but understanding this murky world can be difficult. In this video from BiggerPockets, Brandon Turner (author of "The Book on Rental Property Investing") shares the three different things people mean when they say "Foreclosure" and also offers four tips for finding great foreclosure deals!