When you go to the auction, you can bid on the property. You will be bidding against other people who want it as well as against the bank who holds the 1st mortgage on it. If you have the ability to do so, bring Cashiers Checks with you to the auction in increments (10; $50,000 checks or 20 $25,000 checks, etc.) so you can bid on it.
If the proeprty is not "sold" at the auction, the bank will become the owner and eventually will list the property with an REO Broker in the area.
Banks do NOT sell REO properties directly to individuals. Once an agent has it (it is probably already assigned to an agent pre-foreclosure) they will eventually list it when the bank instructs them to do so.
Best of luck,
Broker / Owner
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
WE NEVER DOUBLE-END A TRANSACTION IN OUR BROKERAGE.
888-391-5245 Direct Cell