The Home owner is negotiating directly with you and in my opinion thatrsquo;s a much safer way to do it. You go in and inspect the property, take a look at everything, have your home inspector walk through and itrsquo;s also a great way to get a deal because the bank knows that in a few days, itrsquo;s going to go into foreclosure and they are going to lose money, so oftentimes, theyrsquo;ll approve it at something reasonable. You are not going to steal the property but something reasonable and affordable and which reflects the condition. Usually there is some deferred maintenance, some other issues with the house but definitely something to consider and watch out for; condition issues. You could also be surprised by banks that loaned earlier mortgages to the homeowner. For example, if try this out the third mortgage lender is conducting the auction, yet there are first and second mortgages still owed, you'll likely have to pay those senior lien holders over and above what you pay for the house. Always have the title checked before you attend an auction. You could also be responsible for back utilities.