What is the ruling on buying a house that was foreclosed because its owner bought it with a bank loan and was unable to pay the bank's dues?
If the house is mortgaged for the principal of the debt, and the Sharia courts or its owner have given permission for its sale, then it is permissible to buy it. However, if it is mortgaged for the usurious interests of the debt, then it is not permissible to buy it, because in this case, the bank's hand over it is that of a usurper, and buying it then is like buying from a usurper.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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