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The technique to apply when buying a foreclosure property will vary depending on the stage in which the property is in at the time when you indicate your interest to purchase.  The first stage is the pre-foreclosure process after the Notice of Default has been issued and the lender is still preparing for the auction.  At this step in the foreclosure process, the homeowner may have already realized that he is bound to loss his home and that it would be best to look for a buyer.  However, it is important to be careful because of the strong emotions that the homeowner may be undergoing.  In this stage, you will need to search for loans that are in default, create a short list of potential targets, inspect the homes, contact the homeowner, estimate the various expenses and the potential profit, negotiate with lender and owner, make the needed repairs, and resell the property to get the profit.