Foreclosure Homes for Sale in Palm Beach County, Florida

Quick Answer

Foreclosure homes for sale in Palm Beach County come down to a short list. Our MLS feed shows 45 bank-owned (REO) houses and townhouses, 34 short sales and 10 listed as in foreclosure, out of 5,071 active houses and townhouses countywide. Bank-owned houses that sold in the last 12 months went for a median of $500,000 (Flexmls, pulled 2026-10-22).

"Brian, can you get me a foreclosure?"

I can. Here is what I tell everybody first.

Add the three groups together and you get 89 listings, and a few may sit in more than one group. Against 5,071 active houses and townhouses, that is under 2 percent, roughly 1 in 57. You are not looking for a deal hiding in plain sight. You are looking for a needle.

A quick vocabulary check, because the terms get mixed up. An REO, or real estate owned, is a house the bank already took back and now sells itself, usually as-is. A short sale is an owner selling for less than the mortgage balance, with the lender's approval. "In foreclosure" means the owner is still the seller while the lender's court case moves forward.

Distressed houses and townhouses for sale in Palm Beach County (Flexmls, pulled 2026-10-22)

Among the 25 lowest-priced bank-owned houses, Boynton Beach has 7 and West Palm Beach has 5. The lowest bank-owned townhouse is $132,000 in West Palm Beach. The lowest asking price on the list is a South Bay house at $95,000, and the next house up is $190,000 in Boynton Beach. Double-check the condition and access on any listing priced that low before you get attached to the number.

Here is what actually closed over the last 12 months, houses only:

Distressed house sales in Palm Beach County, Oct 22, 2025 to Oct 22, 2026 (Flexmls)

Bank-owned sales were spread across the price range: 28 under $400,000, 23 from $400,000 to $599,999, and 34 at $600,000 and up. The lowest bank-owned house sale in that window was $70,000. Condos and land are not included in any of these counts.

Let me shoot you straight, because this is where people get hurt.

Banks sell what they took back, and in Palm Beach County that includes plenty of well-kept houses. Thirty-four of the 85 bank-owned houses that sold in the last year went for $600,000 or more. A bank that owns a $700,000 house is not going to hand it to you for $400,000.

So the honest answer: sometimes cheaper, sometimes not, and never automatically. Compare a bank-owned house to the sales on its own street, not to a headline price.

Brian's Take: the discount, when there is one, usually comes from condition and from the work the bank will not do. Price the repairs before you price the house.

The purchase price is only the first number on a distressed house. Here is what to watch out for before you write an offer.

Bank-owned (REO): the bank often sells as-is and adds its own addendum to the contract, and that addendum can override parts of the standard contract. Read it before you sign. Get a full professional home inspection, as you should on every purchase. An empty house hides things, and utilities may be off. Ask your insurance agent whether a four-point inspection or a wind mitigation report applies to the house you want.

Short sale: the seller owes more than the price, so the seller's lender has to approve your deal. You can have a signed contract and still wait weeks on a bank you never talk to. If you have a lease ending or a rate lock, plan around that.

In foreclosure: the owner is still the seller, and the court case keeps moving. The deal can change if the foreclosure moves faster than the sale.

For all three, price the ownership costs separately: HOA dues and any special assessments, property taxes, and insurance quoted on the exact address, including roof age and flood zone. Double-check the listing you are interested in for each of these, and have a title search look hard for liens. On a house that has been through a foreclosure, open permits and unpaid bills can follow the property.

That is what The Wilder Way Home is for. It is our free buyer guide: what to get in writing, what to inspect, and the order to do it in, so a bargain does not turn into a repair bill.

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With 45 bank-owned houses and townhouses in the whole county, the good ones do not sit. Here is how I would set you up.

Get your preapproval done first, in writing, and keep it current. A bank choosing between offers looks at proof of funds before it looks at your story.

Know your numbers cold. If you need a house under $400,000, the bank-owned list is short: 28 closed under that price in a full year.

Widen the net to regular listings in the same cities. West Palm Beach, Boynton Beach and Lake Worth carry 15 of the 25 lowest-priced bank-owned houses, and a priced-right standard listing next door can be the better buy.

Ask me to set up a saved search so every new bank-owned and short sale listing reaches you the day it hits.

Some people reading this are on the other side of the table. If you are behind on your mortgage, here is the plain version.

Talk to your lender or loan servicer early and ask what options they offer for your loan. A HUD-approved housing counselor and a Florida attorney can explain your rights and options for your situation. I am a real estate agent, not a lawyer or a lender, so I do not give legal advice.

What I can do is show you what your home would sell for on the open market and what a cash buyer might pay, so you can compare the two and decide with the full numbers in front of you. Be careful with anyone who asks for a fee up front or asks you to sign over your title.

Found a bank-owned or short sale listing you like? Send me the address. I will tell you what I would want checked before you go further, and what the regular houses on that street actually sold for.

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Market figures are from Flexmls (BeachesMLS) as of October 22, 2026 and change daily. Counts use the MLS Special Listing Conditions field for Palm Beach County houses and townhouses; condos and land are not included.