If they do redeem they will pay the purchaser at foreclosure the high bid amount, and some costs.

I'd also get multiple bids and numerous interviews to see who is knowledgeable in that particular situation.

I'm thinking about putting the money somewhere 'safe'(maybe something like us treasury money market fund) that would give me enough returns to match inflation, so that i could then invest that when there is a downturn/correction/recession, without losing any of my buying power.

Im not sure its all FoxxCon. in my market, my own homes ARV Has risen dramatically, I purchased in December for $110K (needed $20K rehab) with ARV of $170K today I could list at $199K and possibly have it bid above that, supply is tight in many markets, and in my opinion we may be on the cusp of the Euphoria segment of the cycle hitting is in spring of next year, Projections I have read from WRA and Zillow show expected price appreciation in my market north of 9% by this time next year.

So if you can position your assets into a single family with minimal debt you'll be correction resistant. 

This strategy is all over the Internet and allows you to pay your home off in 5-7 years if done correctly.

Lisa,Good choice, @William Brown is absolutely correct.

ACTUAL bank statements  LOL.. that's what you need.. and that's why they use me.. we are for real and know what we are doing and what we need to do to support those who want to do what you want to do... you either have not explained it correctly to those potential money partners or they are nervous nellies and probably wont close anyway.

You can buy at the auction, if the starting bid is low enough to make it worthwhile to bid. 

Will we have another correction sometime?