Although the homes at auction can be great deals, the details of the contract required for the winning bidder will answer your question. Many auctions will not allow for a financing contingency. If you are financing your planned purchase, you are taking a huge risk with that type of contract. You should have a real estate professional working for you along with a great real estate attorney. If you continue to work in this complex buyers market without the benefit of a great agent and attorney, you will increase your risk of making a hugely costly mistake! I have purchased foreclosed property at auction and it has worked out very well because I took the time to learn the terms of the sale in advance!! Best of luck with your purchase!
Pete Burke, SFR, CPA, MBA