What's the best way going about buying a foreclosed home?

I'm planning to buy an investment property pretty soon and I want to know what the best course of action is in order to achive such a goal. Any good Ideas?

A foreclosure occurs when a buyer defaults on his or her loan payments, often as a result of bankruptcy or other hard times. As the real estate market has heated up, so has the market for Web sites and other clearinghouses offering to help people find quality foreclosed properties. But beware of the hype; foreclosures are out there, but to get the pick of the litter, you need to build relationships first. Another myth about foreclosures is that they are offered at 40, 50 or 60 percent below market rates. This is simply not true. Lenders鈥搘ho own and oversee the sale of the property鈥搆now that foreclosed properties are a hot commodity on the real estate market and will not sell them for less than they are worth. In reality, 5 percent to 10 percent below market price is the norm. One piece of good news, however: foreclosures can be found in all types of neighborhoods. When times get tough, foreclosures happen everywhere. You may be surprised at the number of foreclosed homes found in affluent neighborhoods. Buying a Foreclosure There are three primary ways to buy a foreclosure property: 鈥? Attend a public or private foreclosure auction. You will usually get a chance to inspect the property first this way. 鈥? Buy a preforeclosure, which allows limited review time and requires a buyer to take on the mortgage and any other outstanding debts on the property. 鈥? Buy a real-estate-owned (REO) property that the bank has purchased at auction. Research First, Then Build Your Contacts As discussed in previous chapters, it is important to invest in your own neighborhood. That is why it is best to learn how the foreclosure process works among lenders in your neighborhood. Lenders have different methods by which they pursue foreclosures, but when the decision is made, they will file a notice of default (also called a lis pendens) with the clerk of the appropriate local court that handles foreclosure issues. This document is a public record available for anyone to see, and it gives notice to the borrower that there is a claim on the property. Your local newspaper may publish new filings.

at the court house they get a list of homes that are in the
forclosure process from the lawers before it is actually forclosed upon. I new a guy that would get the list and actually find out how much they owe and go and offer them what they owe. Have a realtor help you on that part. and he would proceed to ask them are you in or out?

I actually tried doing the same thing on a couple of homes.
one home was vacant and the other home the guy kept telling me the owner wasn't home. Any way try to make a deal before it goes into foreclosure. Go buy a book on it and your state willbe one of two states. some like fla have auctions. be carefull there may be 2nds or 3rd loans on the home or even leins. the books will explain how to find out.. all of this stuff is public record.

place a low bid on a hud home in your area also. agents get 5%
on huds instead of the normal 3% so an agent will be more than willing to help you write a bid.

It's very hard and very risky. You're an amatuer investor and this is probably beyond your capabilities. In the first place, you're looking to buy while the market is high. Dropping, but still high.
Bad move. Usually you can't inspect a foreclosure before you buy it. Wanna take a risk like that? Often foreclosures have back taxes due. As the new owner you are liable for them. You can very seldom buy ANYTHING for less than it's worth. Would you sell your property for a low ball offer? Would you work for less money than your skills are worth? Spend the next year learning about real estate investment. Nothing worthwhile is easy to get. You can do very well with real estate but you have to do it right. Learn how, then do it...right!

Read the book "Real Estate For Dummies" By Tyson and Griswald,
it provides pretty good explanations and strategies when it comes to purchasing foreclosed properties