This is a very common question right now, because there are more foreclosure homes on the market than ever before. Last month alone, more than 80,000 homes were foreclosed upon in the United States. When a bank is forced to foreclose on a house because the homeowner stopped making payments, they will try to sell it off as quickly as possible to avoid further losses. They often do this through a real estate auction process.

In most cases, the bidding at an auction will start below the market value of the home. And unless there's a bidding war that drives the price up, the property could be purchased at a great price. This is what attracts people to buying foreclosures in the first place -- it's a way to save money.

With that being said, I am hesitant to recommend it for a first-time buyer. The regular house buying process can be confusing enough for a "newbie." But when you add in foreclosure laws and all the rest, it can become too much for a novice to handle. On top of that, you would need to pay cash in order to buy a house through an auction, and not many people can afford to do that.

If you are a first time home buyer and want to buy a foreclosed bank owned property and you can’t pay cash. These foreclosed homes can also be found through your local realtor. Banks often list their repossessed homes with a  realtor. Ask your realtor to print out a list of these homes as well as any short sale properties that are listed in the MLS. (Multipul Listing Service)