In my extensive researching I saw something the other day where a guy was selling a $1,000 package and figured maybe I could get the answer here.

Here's what he said "as a bird dog there is a way to get an investor ...

Any possibilities of getting screwed in purchasing a property at an auction sale?

They don't have to calculate the value of the home, it's whatever the outstanding balance of the loan is minus what the ultimate (short sale/foreclosure/auction) price was-- At least that's what I understand.

Does the normal bank financing also based on a "move-in" condition of the home.If I plan to buy a foreclosure home with HUD or auction do I need a special lender ?

Imagine the residential market today if you couldn't buy auction or REO properties...if you could only buy from private sellers (99% of whom can't sell for a reasonable price).

If I buy from an auction @ the county courthouse and the first mortgage is the one that is foreclosing, does the second disappear at auction or am I as the winner of the house responsible for that note?

One avenue I forgot to mention that has worked well is auctioning off last minute vacancies.

With small-dollar real estate, specifically...I know there are vulture funds for notes and commercial properties, etc.Here is an example:In March 2009, the FDIC held an auction for IndyMac Bank, which it had seized in 2008, and sold it to IMB HoldCo LLC.

I recently attended an Auction.com auction in Houston, Tx.

I do agree that 2014 is the year for recovery.I am a licensed auctioneer in 4 States and in 3 of those States we do the Auction on the front lawn of the property.