Unfortunately, the current state of the economy has many people accustomed to hearing about homes being foreclosed. There have been almost 80,000 foreclosures in Arizona alone in the past 12 months.

For homeowners, the possibility of having one’s home taken away is terrifying. However, the Arizona foreclosure market is quickly starting to accumulate many homes, which are usually sold through a foreclosure auction. Although a terrible occurrence for the previous owners, a foreclosure auction could be a blessing to someone looking to purchase a home on a budget.

If you’re in the market for a good deal on a house, there is a chance that you’ll find one by looking on the Internet or in your local papers for a foreclosure auction. When a lender is forced to repossess a home, they risk losing the amount they loaned to the previous owner if they do not re-sell the house. Usually, these homes go for much less than they are valued at, so the lender truly does lose out on a few (sometimes several) grand; but for the most part they will make back the majority of their money.

If you are considering the possibility of buying foreclosure property, you should always take precautions and learn as much about the home as possible before committing to a purchase. Some homes can be in excellent condition, while others may not have been properly looked after and require a great deal of work and money be invested. If you are able to have a surveyor come and look at the home before the auction starts, that would be your best bet at finding out if there are any structural or other immediate issues wrong with the home.

You should make note that most foreclosure auctions limit the bidding pool by accepting “cash only” bids. Many banks used to set the starting bid price at whatever the outstanding balance is; however, with the housing market being very slow at the moment, many banks have been forced to start the bidding much lower than the outstanding amount.

So, if you are looking to get a bargain basement price on a home, this may be your ticket!