The majority of investors are more interested in acquiring real-estate owned properties (REOs) and pre-foreclosures than they are in buying properties at auction. With REO foreclosures, the ownership of the real estate has already been legally switched to the lender, and in many cases the lender provides the buyer with a title search and title policy at closing. Pre-foreclosures are another possible source of bargain properties, and they're a good choice for investors who are prepared to treat at-risk sellers with great care.