1. Get pre-qualified - It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate.

2. Assess the condition of the property - If at all possible, visit the property, ask your realtor’s opinion, and review pest and structural reports to make sure that the property is in acceptable condition, or to determine how much of a rehab budget you’ll need to build in to your deal.

3. Determine the property value - Look at the original purchase price, and recent comparable property sales to determine the current value of the property.

4. Find out the amount in default and the remaining loan balance. To determine a reasonable offer price, you’ll need to know the minimum amount of money it will take to satisfy the debt to the lender.

5. Run a legal investing report by contacting services from a title company - Before purchasing any foreclosure property, make sure it is free and clear of any bankruptcies, tax liens or other financial liabilities.

6. Leverage your timing - Knowing when a property is going to be auctioned gives you an extra bargaining chip when negotiating with the seller or the lender.

7. Make a realistic offer - The best savings can often be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process. It often pays to make an offer just before the property goes to auction.

8. If the owner or lender refuses your offer - Bid on the property at auction. Most auctions require that you pay cash immediately, once your bid has been accepted. Figure out the maximum you are willing to pay for the property, and bring that amount to the auction.

9. Be ready to bid on multiple properties - There are usually multiple properties up for auction at the auctions you will attend. So if the property you want the most, goes to another individual, then you can bid on your back up properties.