[Z-man]

Looking to buy a home as my primary residence. RE here in NJ is pretty much dead - at least , in my price range, so I started looking into foreclosures.

We did see a bank owned home that was a good option but before we pulled the trigger on it, someone else beat us to the punch. That home needed a lot of work, and wasn't the typical foreclosed home, as the bank was selling it (it had an MLS number, was sold through a realator...etc). I believe it was more like a short sale vs. a foreclosure. The buyer got it for a song and a dance -- while it needed work, homes in that area that didn't need work were selling for $200 - $250k more than that home.

Now, I found another home. This one is scheduled to be presented at a foreclosure auction next week. Seems to meet our needs, and is likely in our price range. I have read through some of the foreclosure information out there on the interwebs, but still need some guidance.

So - anyone here know about foreclosures? What are the pitfalls? How do I check to make sure the home doesn't have any liens on it? In my initial research, I found the owner may have been a used car lot owner as well, and there were some bankruptcy papers processed. If that is the case, how do I make sure I am not liable for any links between the resident property and the car business?

Is this worth digging into, or would I be over my head going against investors and developers who know what they are getting into?

Thanks,
-Z