Three Ways to Buy a Foreclosure - Wherever you live, there are three ways to buy a foreclosure: in a presale (before the lender forecloses), at auction or directly from the bank. In a presale, you negotiate with homeowners directly, before their home goes into foreclosure. Although the discount can be as much as 20% to 40% off the property's value, a presale is the riskiest way to buy because deals frequently fall through and title problems are rife. And pre-foreclosure buyers have to add in the cost of an inspection and fork over real estate excise tax, as do those who buy bank-owned property. (Buyers at auction may avoid these costs in some states.)

Foreclosure Opportunities - 2012 will bring more foreclosures and that means, bargain hunter opportunities. As housing experts continue to debate when or whether housing will finally turn around for good in 2012, the one thing most agree upon is that foreclosures will continue or even outpace last year. And that will mean more opportunities for bargain hunters.