Foreclosures at Auction

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Hello, this is my first post around these parts. I've been thinking of getting into the investing side of the biz for some time.

I'm hoping y'all can shoot some holes in my theories and give me some things to consider prior to me losing all of my life savings. :lol:

I've been in the mortgage business for about 6 years. I do well, but it is cyclical and I would like to diversify my source of income.

I see lot's of "deals" come across my desk all week, but none of them are "steals". I don't want a bargain, I want a STEAL.

I've done some reading and it seems as if the auction at the courthouse steps tends to be the most risky way to purchase. I don't mind the risk, but is the upside there? I have resources that the average person doesn't. Real comps, title searches, etc.

My concern is in the amount of time it takes to find a good property. Out of say, 2000 coming up for auction, there are probably only 20 worth a look, how many of those will actually make it to auction? It takes a fair bit of leg work to narrow 2000 down to 20.

Then of course there is price. It is my understanding that you can't get in to the houses (without some circumstances) prior to buying them. I think that this fact, along with the cash only payments, will keep a lot of other buyers out of the market. Am I wrong?

So in a nutshell, is the following scenario at all likely?

I find a house worth $120k if it is in reasonable shape. I know that the mortgage balance is 50k. I know that many will not even make it to the actual auction, but lets just say that this one does. Is it reasonable for me to walk out of there spending 50 or 60 k? or will there be another investment company bidding 70-80% of the value. Or more? Or will the bank hold it on it's books and bid it up higher? How much would somebody bid on a house they can't even get into?

Yes, I know I need to get to one of the auctions, but there aren't any for another 3 weeks.