Risky no but you should know the following...

I've said this over and over in previous posts.... The F-word is for the novice or average frustrated investor. What makes people think that putting an offer on a foreclosed house is going to get them the best price? You can count the number of TV ads promoting a system that teaches how to buy foreclosures.... That makes 50 other people dropping offers at the same time, at a price that was already "market".... That's just crazy talk. You want a deal, ok I can understand that but you are not going to find it with a foreclosure without one of two things 1. cash and personal connection with a REO manager or 2. a overpriced offer that you beat 15 other people for.

It's easier to knock on a door of a house that needs repair and say "my wife and I are looking for a home in this area and yours looks cute from the outside". Do you know anyone selling in this area? A hand written note works well too. My closure rate is almost 70% on the notes.... And you get the best deals with no competition.

Ed is correct. Work with an agent who is proficient in the foreclosure business, make sure you purchase title insurance, and make sure your contract is subject to inspections (even though they may not make any repairs), and also you may want to make it subject to your insurance company of choice covering the property as well, sometimes, if it is disrepair, they will not cover it. I think it is a great way to buy a property at a discount, you just have to make sure you are being represented by someone who is looking out for you and not just the commission. Good luck!

Hi Chris. I don't know if it was you who gave Ed the thumbs down for his answer, but I can tell you that Ed is right. Unless you are a seasoned real estate investor, foreclosures can pose many problems and pitfalls and I would not recommend buying one without proper representation. Are you considering buying at the auction or after the bank has already taken the property back? If you buy at the auction, you'll have to either buy on your own or pay for your own agent as the lender does not pay for commissions at that point. If you buy a property that's already bank owned, the property will be listed with an agent and offered through the MLS and the bank will pay the buyer's agent commission.
If you buy at the auction, you'll also have to have a cashier's check for the down payment and you better do your homework so that you don't end up with a property with liens that survived the foreclosure or with a property that has all kinds of damage and costly repair items. Good luck to you.

Not if you have the right representation. Contact a Realtor specializing in foreclosures to guide you through the process.