I’m know you’re in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what’s different during this crisis is the quality of foreclosed homes and neighborhoods they reside, has improved drastically. Even nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.

The timing for researching on a great deal for a new house couldn’t be better then it currently is, but first you should be aware of the pros and cons of purchasing homes through a government auction as compared to the traditional way of using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- Price is the number one reason to purchase a foreclosed home.

- Many homes are in good condition for much less than their market value.

- Variety and selection is better then it has ever been.

- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).

- Some insurances are optional. It could save you hundreds a month.

- Landlord or resell venture opportunities.

- Less risky than trading equities in the stock market.

Disadvantages:

- Borrowing money may be more difficult, unless you have strong credit.

- You need to be aware of any existing liens, judgments, or unpaid taxes still on the property.

Check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash to put down it makes your profit potential more appealing.

Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure which are properties you can purchase before the auction, and foreclosures. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to watch during the initial part of your first visit to a government auction to gain experience and get an idea of the procedure.