If you don't mind owning a repossessed home, it can mean huge savings for you. Repo houses are properties that have been retrieved by banks and other financial institutions due to non payment of loans that were taken out by the previous owner. Subsequently, banks and financial institutions sell them at a much cheaper rate. Auctions are the best place to look for some best ownership options if you want to get a house at a throwaway price.  However, there are basic details you need to take into account when bidding for repossessed houses. Here are some of them: Neighborhood Just like selling any kind of property, you want to make sure whether the neighborhood the home will be a good investment or not. In most cases, the repo house will be priced based on its locality. Therefore, it is best to check the locality beforehand so you know what kind of property you are getting. The House You can't expect repo houses to be in exemplary condition at all times. Properties that have vandalism may decrease their value substantially. Then again, with some painting and refurbishing jobs, you may still get a good condition house free of dust and cracks. Checking the house prior the bidding gives you a rough idea behind its asking price. Liens and Liabilities Liens and liabilities attached to repo houses can become a huge issue once the transfer of ownership starts. To avoid such complications, be sure to check them as early as you can.