There are so many issues to address:
1. Just because a website (we all know which one you are talking about) says is it posted for auction, doesn't mean that it is. They frequently publish bogus information, bad pricing disinformation, and inaccurate data.
2. Buying a Short Sale is better than buying a home at auction. Unless you are a sophisticated and seasoned auction veteran, you could find yourself the proud owner of multiple tax liens that are NOT cleared by foreclosure. Auction sales are "as is, where is" with all faults. No repairs, no do overs. What usually happens is the bank bids the full amount owed. A "successful bidder" will start with "$1 more". Quite often, the bank bid is more than the home is worth. Then the bank has to take the steps to clear the liens, do minimal repairs (sometimes), and re-market the home as a lender-owned property.
3. As Josh Boggs said below, if you get proper help, you might be able to do something, but don't try it alone. Josh actually specializes in this type of sale, so you might start there. He has the tools to find out accurate information.
4. After working so hard to restore your credit, wouldn't it be a shame to make a huge financial mistake? When buying a home, there are so many factors that Buyers don't think about, but REALTORS do. PLEASE find yourself a pro to represent you. The Seller's Agent usually pays for your agents fee, so you can get the best agent you can find, and let them lead you through the very detailed process. Here's a link to my blog article on why you need an agent: http://www.trulia.com/blog/ellen_doc_stephens_realtors/2010/
Doc Stephens, REALTOR
If it does not work out on this particular home... I'll send you all the homes out there that fit what you are looking for.. and very few can match what we offer as far as savings and loan programs.
Roland Gonzales, ABR, GRI, CRS, CDPE
Being one of largest and most successful short sale and pre-foreclosure teams in the city; we see this every month. In fact we've stopped about 40 homes from hitting the foreclosure block w/in a week of notice this year alone. If you're serious and want the property and we can get in touch with seller quickly; it can be done and usually w/out any cost to the home owner or you as the buyer.
Please shoot me an e-mail if you are serious about making that happen.
We're still here to help guide you to an answer or more information if you're truly serious about stopping the foreclosure and to purchase the property.
Looking forward to hearing from you.
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
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If you are interested in a foreclosure, let an experience agent discuss the pros and cons. Good job on working on your credit. I have read some great advise thus far. Call anytime, thanks for reading.