You can easily break down the process of foreclosures into three primary stages. Ready? The first stage is pre-foreclosure the second stage is foreclosure auction and the third and final stage is bank owned foreclosures or real estate owned properties as they're frequently described.

Generally speaking as you move along the timeline of the foreclosure process your potential for profit will decrease the later you get to the foreclosure a property. In other words there is probably much greater profit possibility if you are able to identify a property right before it enters into the initial stages of foreclosure in a market that you are familiar with as opposed to calling up the bank for real estate owned properties.

Now let me shed light on one thing, this doesn't mean that one way of doing things is better than another. It's actually a bit more complicated than that. It depends on what you're looking for when all is said and done. If you're planning on making a full-time living eventually from real estate investment then you'll definitely want to learn in baby steps how to get the most out of your time and efforts.

With that said for those who are interested enough to do this full time you will want to learn how to find pre-foreclosures because they generally offer you the maximum leverage and profitability relative to the most deep discounted properties available via bank owned properties

However if you are simply looking for a deep discount at home without wanting to implement an entire business involving marketing, distribution, and promoting yourself while driving around neighborhoods every day looking up MLS listings conducting market research and paying all all the costs overlays involved in running a business, then it is unquestionably advisable if you are looking to simply purchase a more inexpensive home to come to call up the bank for a foreclosure property.