We've had lots of people asking about buying foreclosures here at the group so I'll try to shed some light on a subject that's had alot of attention in the media lately.  We'll start with how a property goes into foreclosure and the process the banks use to sell foreclosed homes.

When an owner becomes significantly behind in their payments the bank starts the first step in taking back the home by alerting the county that the mortgagee is behind.  This is done by filing a lis pendis.  There are quite a few unsrcupulous websites out there that will promise you foreclosure leads if you sign up and pay them a little money.  Typically, these leads are nothing more than lists of homeowners that have had lis pendis filed against them.  Often times the loans are salvaged before the formal foreclosure procedure goes into effect.