"Yet while there is a tantalizing possibility of getting a deal, people who are intimately familiar with foreclosure auctions in New York — lawyers, mortgage bankers, brokers and former auction regulars — advise steering clear of them.

Success is not impossible, but to even set foot in the ring you must put in hours of due diligence and overcome myriad obstacles, including competing against auctiongoers who have mastered the art of the bid."

While there are great deals to be found, as demonstrated in the article, finding those deals usually requires experience evaluating properties without a full inspection — along with ample persistence and pluck.

It's best to start your investing with pre-foreclosure properties, which offer great bargains with less risk, and wait until you have several successful deals under your belt before you consider auctions. Lance Young, a real estate investor and author of several eBooks on real estate investing, recently told me he doesn't recommend foreclosure auctions to the beginner investor unless "he or she is willing to lose money on the deal.”