Dear Jill,
There are a few different scenarios for buying houses in foreclosure. Some houses in early stages will be sold by the owner and an agent in a "distress" sale. Some homes have been repossessed and are sold at auction.

If you decide you want to try to buy a house at auction, you must do your due diligence in advance of the sale. In many cases, you will not be able to set foot in the property prior to purchasing it. And you must have your financing in place - not so easy to do in our current mortgage market. But if you have cash, and don't mind buying sight unseen, you can pick up some good deals.

A distress sale may be a better option. A buyer's agent can keep track of the market for you, and inform you when homes in early stages of foreclosure come on the market. If you'd rather go it alone, Realtytrac is a good resource for monitoring foreclosures - there's a fee to subscribe, though. Of course, I'm a big fan of letting us real estate agents earn our commissions by doing the research for you!

Tina Fallon http://www.realtycollective.com