When can ownership of a foreclosed property change hands?

Ownership of a foreclosed property officially changes hands when there is a foreclosure deed. This deed serves as the legal document that transfers title from the previous owner (typically the borrower who defaulted on the mortgage) to the new owner, which is usually the lender or a third-party purchaser at a foreclosure auction.

The foreclosure process culminates in this legal instrument, signifying that the property has been repossessed due to default on the mortgage. Once the foreclosure deed is recorded with the appropriate county office, the new owner's claim to the property is established, and they can begin exercising rights of ownership.

The other options relate to different aspects of the foreclosure process but do not constitute ownership transfer. An auction might determine a buyer, but the ownership isn't finalized until a foreclosure deed is executed and recorded. The mortgage payoff is relevant to eliminating the debt but does not reflect ownership status. Lastly, a real estate agent signing an offer pertains to the transaction process but is not the point at which ownership transfers.