Warning For Novices: Please Avoid Foreclosure Auctions

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Lured by greed and overconfidence, bargain hunters who have no idea what they are doing are making extremely costly mistakes at foreclosure auctions.

Don't Compete With Pros

The pros research thousands of properties and bid on only a few of them. Outbid one of the pros and you may do no better than break even. Worse yet is to bid on properties where the pros have no interest. That's a sure recipe for disaster.

In a courtroom auction you might be able to spot the pros after an appropriate amount of time. In an online auction, it's not so easy.

If you do not know exactly what you are doing, what liens exist on the properties you are bidding on, and what the properties are really worth, then you going to lose your ass. Moreover, even if you have researched the properties well, you will be competing against the likes of professionals who know even more than you do.

The best course of action is to assume there is no easy money in foreclosure auctions. Whatever money there is to be had, the pros will get it, not you.