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 “pre-foreclosure” directly from the homeowner, or waiting until a home fails at auction and is back on the market.