Foreclosed properties often present with substantial damages or defects, like defect or missing appliances, A/C’s, mold, overgrown backyards and unmaintained pools, water damages and plumbing problems, wiring issues, cracks in foundation or bad roofs. The previous homeowner has no reason to spend the money or effort to make repairs, as the property is no longer his, and he sees no benefit if the house fetches a higher sale price. A bitter homeowner may go so far as to purposely cause damage to the property.
This, coupled with the fact that you likely will not get to inspect the property prior to buying (especially if auctioned), creates a significant risk for you as a buyer. While it is certainly true that you can save – you must seriously consider the effort and the risks you undertake and what you will truly receive in exchange.