In Tampa Bay when a property is foreclosed it is first auctioned online by the County Clerk to ALL CASH buyers. Most properties will have a final judgement amount owed that exceeds the full market value so unless the foreclosing lender allows it to sell below the judgement amount it will go back to the lender. Banks/lenders do not typically sell directly so they'll hire a local realtor to list the property for sale. Some foreclosed homes will be restricted to buyers that intend to occupy as their primary residence. So unless you're able to pay with ALL CASH and be willing to do a lot of research before bidding then you will need to line up with the many, many buyers looking for a bargain. Most properties are receiving multiple offers at prices above what a property may appraise for. The days of getting a 10% immediate return on a rental property are over...unless you also factor in the appreciation of the asset. Last year we experienced a 14% rise in values.