I agree that there are risks. You have to know what you’re doing when buying foreclosures, or else, you’ll be caught holding the bag. But you can find deals out there, such as preforeclosure and such. Also, not everyone can buy foreclosure, you need the cash on hand to buy those. So the demand is limited. Especially, in a down market, there would be even less people bidding. The pro who bid will probably take the market condition into consideration and bid accordingly. So foreclosure auction might not be a good deal in a up market, in a down market, you might be able to to find better deals.
