This really messed us up because the seller was in pre-foreclosure and their house was going to auction very soon.

I recently was high bidder on a Hubzu Auction (actually only bidder), but the price did not meet the reserve.

Just wait until the property gets listed on MLS, or sometimes you can catch them prior on the auction sites.

There's an attorney in Orlando who has a great website devoted to this exact topic that is a must-read: https://www.richardhornsby.com/crimes/regulatory/u...It states: "In Florida, it is unlawful to engage in the following real estate related activities for compensation without possessing a real estate broker's license or sales associate license.Advertising or marketing another person's timeshare or property for compensation.Auctioning or attempting to auction another person's property for compensation.Buying or attempting to buy real estate on behalf of another person for compensation.Listing another person's timeshare or property for compensation.Operating as a real estate broker or sales associate without a license.Renting, leasing, or attempting to rent or lease real estate on behalf of another person for compensation...The crime of Unlicensed Practice of Real Estate is a Third Degree Felony and assigned a Level 1 offense severity ranking under Florida’s Criminal Punishment Code.If convicted of Unlicensed Practice of Real Estate in Florida, a judge can impose any combination of the following penalties:Up to five (5) years in prison.Up to five (5) years of probation.Up to $5,000 in fines."

My out of pocket expenses are (sometimes $0-$1000 for good ARV contracts) business cards, for sale signs,copies of contracts, skip tracing online services (MemberReportsOnline.com) and that's about it. low cost, don't ever pay  money down on a property unless you're at the city auction.

But yes, there are some risks and the auctions, at least in the more populated areas, the auctions are very competitive with no great steals....mostly buy and hold investors and mini funds. 

It looks like there will be a second round of auction for this one.

In TX, they only have to pay you 25% of the PURCHASE price at auction, so you stand to get cleaned out.

I know I should consult an attorney but time is limited as the auctions are all next week.  

I found a very attractive bank owned property that will go up for auction in a few days.