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Starting Out: How to Co-Own a House Diana Ransom.

Kelly Furlong is fed up with renting. After sending a sizable chunk of her pay to her landlord each month, the 25-year-old sales professional in Springfield, Va., has decided she is "making someone else rich."She doesn't have the financial resources to swing a big down payment and hefty mortgage payments on her own. So she and a longtime friend are now looking for a house that they could buy together, Ms. Furlong says, "because it's way too expensive to do on my own."

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Want a cheap home? Buy a foreclosure

Mangan, Doreen.

For those looking for a starter house, a trade-up, or even a weekend place by the shore, a foreclosed house may be the answer. Mortgage foreclosures have increased by about 25% in the US in the last 3 years, owing in part to corporate downsizing and mortgage balances that outweigh current market values. The majority of foreclosed houses in metropolitan areas fall in the $50,000 to $250,000 range.

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