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© UggBoy♥UggGirl [ PHOTO // WORLD // SENSE ]

It can be complicated to value homes that are in foreclosure and determine if the y are a good investment. The first step is to get a free foreclosure list to see what properties are being offered for sale in your area.

Sales are often held twice a month at the local court house. Not every house that is listed is going to be a great deal, so potential buyers should be skeptical. If any of the properties interest you, you should do your research and find out what neighboring properties are selling for via the MLS database. Become very familiar with the home values in your area, so you will better able to judge the value of a foreclosed property in comparison. You should insist on viewing the property before sale, because occupants who are kicked out of their homes often tear up or strip the house in the process of moving out.

© Casey Serin

Some people are making a career of buying properties at monthly foreclosure sales and flipping them. They look to buy at low prices at foreclosure auctions, clean up the properties and sell them for a profit. In this case, some people's bad fortune is someone else's opportunity, and these property flippers are providing a backstop to the market.

Today's flippers differ from those during the real estate boom who were focused on taking advantage of rapidly rising prices. Today, flippers are looking to buy at the lowest prices, doing minor repairs and trying to sell the properties quickly. The profits aren't as large as during the bubble, but these flippers may be selling more properties in a year to make up for it. They are really doing their homework on what market prices are, spending up to 60 hours a week prior to auctions doing research on potential properties.

© Mr. T in DC

While real estate speculators were demonized during the buying frenzy that was the US housing bubble for driving home prices to stratospheric levels in Florida, now they are desperately needed because there are so many vacant and foreclosure properties in the state and ordinary home buyers are having trouble obtaining credit.

A Milwaukee, Wisconsin ordinance that would allow investors to buy single-family homes and small rental properties obtained by the city through property tax foreclosures was recently approved unanimously by the Common Council's Zoning and Neighborhoods and Development Committee. This is an acknowledgment by the city that investors are needed to help get foreclosed properties sold, occupied and back on the tax rolls. It will be interesting to see if more cities and states follow suit and pass similar changes to housing regulations.