If a home is going to public auction, it can mean that either the seller is trying to get the home under contract prior to the foreclosure or public trustee sale or that the public trustee sale has already happened and the bank, who now owns the property, is auctioning off the property to clear its books.

The majority of the time, the home is sold in "as is" condition with no waranties or guarantees by the seller. You should still have the option of a home inspection but, if the auction company requires a large earnest money deposit and quick close, that inspection may have to be done prior to the auction date. The same may be true if the bank owns the home. There are only a few auction companies that I am aware of that will actually let you do your "due diligience" during a 15 or 30 day cycle after a buyer has won the bid at auction and before closing. I have a listing that is going to auction later this month and that is the case with this transaction.

Auctions are tough in that they do not allow for what I consider 'appropriate contingencies' to protect the buyer. They usually do not allow for an inspection period. There is also a buyer's premium in most cases. I would consider a bank owned or HUD purchase.