Purchasing a foreclosure at auction sale can be a very rewarding way to buy properties.The property is publicaly auctioned off to the highest bidder.The auction happens fast, most are executed in a matter of minutes. So be prepared. Arrive early, keep in mind the amount of money your are willing to spend and stick to it. It’s easy to get carried away during the bidding process. Most auctions require a down payment of 10 to 20 percent cash deposit on-the-scene, with the balance sometimes due within
a day.

You will be competing against the lender and other investors.

This is a great way to acquire a property, bank auctions and government auctions present a great opportunity to purchase a property and make a substantial profit. Neither the bank nor the government want to own these homes, they simply want to recover part of the financial lost.
Do your homework
-Identify desirable neighborhoods – Prefer neighborhoods where you would want to live or own a property. This will reduce of size of the search.
-Nota bene: There is money to be made in less desirable neighborhoods, just make sure that the price is right.
-Explore your possibilities – There are a number of Websites in the internet like foreclosure.com that offer thousands of foreclosed properties at your fingertips.

Determine the property value
-Square footage
-Size of the land
-Location
-Comparable prices for other similar homes in the neighborhood
-Condition of the property, often you will need to do some repair in the house depending on how long the property is abandoned
-Make sure there is no lien on the property, they usually put on the market free and clear
-Schedule an inspection as soon as the offer you made is accepted

You have probably heard that  the banks used the best real estate agents of the area to sell their foreclosures. I disagree with that statement. Being an investor myself , I had my share of difficulties finding a Realtor®  that was willing to answer the  phone and didn’t even call you back, work with a buyer’s agent who is not also representing the seller ” the bank in this case”.

 A good real estate agent is one who puts your interests before his own,  has the experience and fight to get you the best deal possible.  In my experience it’s better to find an agent you feel comfortable with,  willing to answer all the questions you might have.

The first step is to locate a  foreclosed property.

You have several options such as:

Find a Real Estate Agents

Contact agents who are  working on the field, not those working in their offices. Good agents spend really little time at their desks.
A effective place to meet agents is at open houses. Don’t feel bad  that you’re not interested in this  property. The agent knows that open houses rarely bring a buyer for ”that” property.
Another good way is to meet an agent with whom a friend or relative. If this agent produced positive results for a friend of yours, there’s a good chance  he will do the same for you.
Most banks usually employ Real etate agents to sell the properties.  These properties are placed on the market like any other. Investors and individual buyers will find foreclosures listed with other properties.
When a property is sold through a real estate agent, it is placed on the Multiple Listing Service ( MLS). Real Estate agents can access this list of properties on behalf of buyers.
Ask a real estate agent to search for properties in foreclosure on the MLS or through private listings. Some real estate agents specialize in targeting lucrative foreclosures for investors.
Note that bank-owned properties may not be listed publicly and may only be available to real estate agents.