A couple things about the sheriff's auctions, just in case you guys iddn't know. When you buy from one of these auctions, you're actuallying buying a lein, not the house. This is great if it's the only lein on the property, but sometimes it's not. Sometimes the leins being sold aren't even the primary leans, but a junior lein that might get wiped out in foreclosure procedings. You can purchase a lein from an auction and actually walk away with a worthless piece of paper. You have to reasearch the title and make sure that your buying the primary lein and that there's no other leins on the property. I'd tell you exactly how to do that, except that I haven't reached that far in the book yet.

You should also look into title insurance. Title insurance will cover in the event that you buy a foreclosure and another leinholder pops up unexpectedly.

There also might be a redemption period during which time the owner can make good on the loan and take the property back. You should get your money back, but if your'e paid to renovate the house at all you'll be out that money. Sometimes houses get sold before the redemption period is up. I guess it would depend on your state laws. I read of this happening to someone but I can't find the news article.

Here's a listing of gov't held homes that have been foreclosed. Some of them are for nonpayment, others obviously aren't. I'm sure the IRS doesn't do mortgages. The Fannie Mae link doesn't work, it's actually homepath.com. Fannie Mae owns a property in my hometown though and it's not listed on homepath, so I guess you should still check your local listings.

Homes for Sale/U.S. Department of Housing and Urban Development (HUD)

You might have already known all that, but just in case someone else wants it, there it is.