Purchasing a loan going into foreclosure

[Walter Scovronski]

I recently came across a couple of properties where the seller is selling the "rights to the first mortgage". In other words i would be buying the loan from the bank, waiting 60-90 days until it goes to auction and then setting the reserve to more than the property is worth then taking over deed. All I have to do is dues diligence such as check liens, taxes, and probate. we would then verbally agree on price and he would let me inspect inside of the home and then negotiate depending on condition. Basically all of this is done with attorneys and judges. the people are deceased, there is reverse mortgages, the heirs to the property want nothing to do with it and just let it go. My question is, has anyone ever felt with anything like this or know if this is a good investment?