To find out which properties are going up for auction, you should read the local legal newspaper in which these auctions are advertised. Alternatively, most counties maintain a service that picks up such notices and mails you a list of them. Sometimes, however, this service tends to be expensive.

Finding out about the sales is therefore relatively easy, but locating the property to be sold can be difficult because only legal descriptions are provided which do not include a street address. It helps to have a friend in a title insurance company who can supply you with usable addresses from legal descriptions.

It’s what people always think of when foreclosures are mentioned. The auctioneer, the gavel, the bidders, and the frenzy of pushing up the price. It’s usually not as dramatic as that, but there’s no question that auctions are the glamour area of foreclosures. It’s here that properties go to the highest bidder. It’s also here that some of the best buys can be obtained.

You can see a condo worth $225,000 go for $117,000 and a house worth $335,000 go for $200,000. There’s no question that the bargains are here.

A Private Headache
There are many individuals who become involved in real estate repossessions unexpectedly and in an unwanted fashion. For example, Fred took back a second mortgage for $10,000 on his house 3 years ago. He thought he was through with the property.

But when it came time for the buyer to pay off the balloon on the second, the person defaulted. Fred was forced to start foreclosure proceedings and take back the property. Now Fred has a real headache.

The IRS lists property it has seized and is offering for sale on its Web site.

Generally, there are fewer than 100 properties at any given time, and they are scattered across the country. The terms for each piece vary, but the IRS usually wants a 20 percent deposit with your bid and all cash at the time of the sale. Cash means cash, certified check, cashier’s check, or some similar form of payment. The bidding procedures also vary somewhat, but they arc outlined for each property. When you click on the notice, you are told whom to contact, the bidding procedure, and photos of the real estate are given.

The General Services Administration (GSA) sells surplus real estate owned by the government. This property is acquired from a wide variety of sources. Some comes from the Internal Revenue Service (IRS), which acquires property from people who don’t pay their federal income taxes. Other properties come from other agencies of the federal government. The Property Disposal Office of the GSA has the responsibility of selling property to the highest bidder. Sometimes you can get extraordinary bargains here.

The GSA usually sells its properties using two methods: sealed bid and public auction.