Whether you're buying real estate for your primary residence or for investment purposes, purchasing foreclosures can be a great way to get a deal - IF you know how to navigate the process.

Before getting into the specifics of how to acquire a foreclosure, consider whether the risks are worth the savings. Most foreclosed properties are sold "as is" and buyers take on whatever problems that come with the home. Inexperienced buyers of foreclosures may come across problems like unexpected repairs, IRS penalties and prior loans. Are you prepared to deal with these unknowns?

If yes, one way to buy property at a highly discounted price is by finding a seller who has neglected a property or failed to make payments on the mortgage, taxes or insurance. While it takes careful research to uncover delinquent property owners, it can be beneficial for you both if you can make an offer to buy the home before the property is foreclosed. This can help the troubled seller avoid losing the property, and the equity built in it, to the foreclosing lender.

More often, it is easier to find properties that have already been foreclosed. You can subscribe to local newspapers that list foreclosures and request notices from local banks when properties are foreclosed. These publications provide information about the property location and the Trustee Sale. The Trustee's Sale is a verbal auction that allows potential buyers to purchase a property by paying off the remaining value of the foreclosing loan, regardless of the fair market value of the home. Obtaining a property at this sale is a great way purchase a home at a lower price.

Perform as much research as possible in advance of the Trustee's Sale, learning not only about the title and debt on the property, but also the condition of the home. Typically, there is a limited timeframe for research, but be as knowledgeable a buyer as possible. You don't want to end up with a money pit.

Begin to research the foreclosures in your area so that you can decide whether buying foreclosures is the right financial investment for you.