Auctions don’t always yield great deals

As a wave of foreclosures has swept the country — the number of
foreclosed homes is expected to quadruple this year — buyers have
looked to foreclosure auctions for deals. But buying at an auction
means competing with knowledgeable local investors, as well as dealing
with mortgages so steep that banks often ask for bids higher than the
property value. Buyer could have an easier time buying a home in
“preforeclosure” directly from the homeowner, or waiting until a home
fails at auction and is back on the market.