[TriMT7]

You will have to remember, however, that if you are looking for a foreclosure bargain, you are not likely to find one in a collapsing market like this... yet.

People defaulting are those people that have overpriced homes on bad mortgages.... and most likely people that got them in the past couple years. When a bank forecloses and there is a court ordered sale or auction, (and someone with more experience can correct me if I'm wrong) the foreclosing bank USUALLY bid up to the amount owed to themselves on that property during the forced sale.... meaning you won't snatch that 400k property for 50k! You'll probably have to wait until the bank has a public auction for their distressed properties, but what will probably happen is they might attempt to sell at "new market" price.... which is far from bargain basement deals.