Please do not make the same mistakes as so many others as if you do not know how the foreclosure auction world works you could be throwing good money down the drain. There are any number of parties who could foreclose upon a property and if you outbid a junior lien you will find that you will have other liens that need to be dealt with. I field a lot of calls on this subject and they usually are from uneducated participants in auctions who have outbid a homeowners association or other junior lien.
A few weeks ago I had one such call from a party who got into a bidding war with another uneducated bidder and ended up paying $60,000 on a foreclosure by a homeowners association. About $9,000 of their money went to the Homeowners Association and the balance to the bank. They in turn got very little and about all they can do is rent the property until the bank forecloses and hope to recoup some of their money. They could also negotiate with the bank but will typically find this is a fruitless effort.
Please, please, please do not participate in these auction unless you know how the game is played. Best of luck and if I can offer anything additional please let me know.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty