Tips for getting the best foreclosure deals

TRACEY C. VELT Bankrate

Foreclosure. It seems like half the country is in it and the other half is trying to make a killing on it.

The number of foreclosed homes staggers the imagination and with more adjustable-rate loans about to reset, the end is nowhere in sight. The crisis, however, provides the opportunity to purchase a house that was all but impossible for many to afford in the boom years.

But there are many pitfalls and a hasty buyer can end up in a quagmire.

With investors flocking to capitalize on discounted properties, good deals usually go fast. It's unrealistic to think you're going to get a pristine property in a prime location for 50 percent less than area comparables. But 20 percent under the neighborhood market is very possible. If you're a potential foreclosure buyer, the obvious place to start is price and condition. But there's far more to it. Consider these tips to get your best deal.

"This can happen two different ways," says Sean O'Toole, founder and CEO of ForeclosureRadar.com.

"The underpriced properties get a ton of activity and go quickly, but you can really get a better deal on an overpriced property," he says.

An overpriced property will generally get little interest and may sit on the market for a year or more. Therefore, when someone actually makes an offer, the bank may act on it quickly.

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