We recently got into a bidding war on a forclosure. The number one advice I would have is to not use your own realtor. Use the listing agent. Once the bidding started the listing agent is under no obligation to keep your bid secret. So no matter what you bid she can disclose it to one of her buyers. She represents the bank first and they are only wanting the best price and terms. She wants the highest commission so in the end her client got the house.

It depends where it is in the foreclosure process. If it's being auctioned on the court house steps, this is were you buy it. I suggest going to a couple of auctions before hand & seeing how it's done. If it's listed on the MLS just contact a Realtor. I'm not aware of any trades being done on foreclosures.