There are three different types of foreclosure sales :

Pre-foreclosure sales: These are homeowners who have been delinquent on their mortgage and the bank has given notice that they intend to foreclose on the property. Such notice is called a “lis pendens”. “Lis pendens” notices are listed in public record and can be researched by anyone looking to buy Foreclosure properties. Buying pre-foreclosure properties requires you to have direct contact with the owner. This can be either a good thing or bad thing depending on who you are as a person. Remember, you are dealing with someone who is under duress. YOU MUST ASK YOURSELF ARE YOU THE TYPE OF PERSON WHO FINDS IT EASY TO TAKE ADVANTAGE OF SOMEONE UNDER THESE CIRCUMSTANCES.

Foreclosure Auctions: These auctions are very competitive and not for Novices who want to buy foreclosures. Many of the participants at foreclosure auctions are experienced full time investors or lenders who have an interest in the property. It is very hard to compete with these individuals.

Bank Owned Sales: These properties have been foreclosed by the bank. Remember the bank is in business to lend money not to own real estate. Bank REO departments track property that the bank has an interest in and can be a good source for foreclosed property or soon to be foreclosed property. Often banks will provide new financing on bank owned property.

In Evanston , Realty Trac lists 191 properties in the Pre-foreclosure stage, 41 properties up for Auction and another 41 Bank Owned.