If you’re in the market for a new home and you’re checking through local listings there is one resource that you might not have considered up till this point: Foreclosed properties.  Granted, all real estate markets across the country are different, even within individual markets the dynamics can change neighborhood by neighborhood, and some markets within the US don’t have foreclosed properties.

Foreclosure homes in the “pre-foreclosure” process are great for bargain shoppers. With so many homes currently on the market it’s simple economics that when supply exceeds demand, the consumer benefits from the subsequently decreased prices. This means that homeowners can save big and their buying dollars can go a long way with the purchase of a foreclosure property.

There is no shortage of houses currently for sale and this trend is likely to continue with millions of homes in one stage or another of the foreclosure process. MSN reported on how much savings a buyer could get by investing in foreclosure properties. Though the days of flipping property quickly seem to be over, this has still proved a great way for people living out of an apartment or using a local StorageMart to keep all of their belongings while waiting for the market to improve. You don’t necessarily have to wait and there are two main ways of attaining one of these troubled properties.

If you feel that this might be the right move for you then the first step you need to take in buying a foreclosed home is to ensure that you have the credit and resources on hand to buy and keep the home. It may be a great deal but if you don’t know if you can afford it in the long-term then you might have to foreclose yourself. Check your credit score, monthly budget, and how much buying power you have with a lender or bank and then start looking at properties.

Then check out how to begin the process of buying a foreclosed home. You can go to local state auctions to bid for a home. You can check listings in the newspaper but there’s a risk here that you’ll be buying a home without having the ability to first inspect the property. Also, if you do this, you’ll have to be up front with cash on had to buy the house. This is one avenue you can take that can save you a lot of money but could end up costing you a lot in repairs. You might also find yourself in the undesirable situation of having to evict the current homeowner. These are negatives but this still offers the greatest savings on property investment.

Another option available to prospective buyers is real estate owned. This is when a property has already been repossessed and is now being resold. It’s a preferable situation to many people, because a buyer has the ability to have the home inspected before any bids are placed. There is a downside to this because the bank is trying to get as much back on their investment as possible and you’ll have to fight with them over the price. They’re trying to make back as much as they can on their foreclosure losses which means the discount in savings to you might not be as great as if you were to buy a property at auction.

When all is said and done buying a foreclosed property will save you money. Though there are more upfront costs, the long-term cost savings will be passed on. First you need to be sure that you can afford all of the initial costs. Since there’s such a huge stock of available homes, lenders and the market is more willing to sell properties because they’re motivated to get people into them. Buyers have a lot of leverage right now and regardless if a property is in foreclosure or not, you’re going to save a lot of money. Only the buyer can decide if this is the right move for them.