10 Tips to Keep In Mind at Foreclosure Auctions

Real Estate Image Gallery Heading to a foreclosure auction? There are a few things you should know before bidding. See more real estate pictures.

It's happening everywhere, and it's happening often: Well-intentioned people purchase homes only to find themselves unable to make payments because of hardship, or unwilling to pay when the house value plummets far below the purchase price.

In fact, in 2010, a record 2.87 million properties received default notices, went up for auction or were repossessed, and 2011 is expected to be far worse with a frightening 20 percent jump in foreclosures [source: Levy and Gopal]. So, not only will there be even more homes in foreclosure, but the prices will also be even lower. The good news is that this set of circumstances is a perfect storm for anyone wanting to buy a home at a foreclosure auction.

Buying at a foreclosure auction, however, is serious business. Before you speed off to your first auction, check out the following tips.