I'm sure you're aware of the real estate and foreclosure crisis going on in the United States. Because of this, there is an excess of homes on the market. Obviously some properties will be run down in unappealing neighborhoods as usual, but what's different this time is the surprisingly increasing number of well kept executive style properties that are up for sale for pennies on the dollar.

There are some great values out there but in order to take advantage of them you should first be aware of the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method of using a realtor.

Here are some advantages to purchasing a foreclosed or pre-foreclosed home:

- The main advantage in purchasing a foreclosed home is the below market price.

- Many homes are in good condition for much less than their market value.

- Variety and selection is better then it has ever been.

- No middle man (Realtor) to have to go through or additional fees to pay (although you should consult with someone along who can inspect the home(s) for you).

- Insurance is optional which if not required will provide an additional monthly savings.

- Good property investment for renting or reselling.

- Less risky then the stock market, as you own something tangible

Disadvantages:

- Borrowing money may be more difficult, unless you have strong credit.

- There may be existing liens or unpaid taxes against the property.

Check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash to put down it makes your profit potential more appealing.

Government auctions are held every week throughout North America. You can locate detailed information regarding auctions on the web. Some sites will even show you previews of the houses that will be available at the upcoming auctions. Buying an estate through a government auction is very fulfilling, but as I already mentioned do your homework. You may want to watch the bidding during your first visit to a government auction so that you are comfortable with this process.