I used to have super great credit until a disaster of a divorce hit in 2009....had 2 foreclosures as a result, 3 young kids to raise and credit destroyed...  

Framing ownership as having shelter risk of foreclosure, limited employability, high expense etc etc etc. 

on line live auction banks auctioning off post foreclosure short sale for below marlet pricing How did you finance this deal?

They don't care about whether you are cash or getting a loan, amount of earnest money (as long as it meets their guidelines), etc.So any time you are contemplating purchasing an REO (a bank term for Real Estate Owned to differentiate between a distressed borrower in the foreclosure process), focus on maximizing the amount that the bank will get after fees, etc.Typically they won't go back and forth.  

The morning of the eviction, the tenants came up with the money needed in the judgement to avoid foreclosure. 

Is there any good reason not to buy a foreclosure (aside from the mountain of paperwork)?

I'm operate in smaller markets and it's true that there are many professional bidders at the larger auctions, I am frequently able to pick up properties uncontested from the smaller trustees who hold their auctions at different times.But I wholeheartedly agree, buying at foreclosure auction is not a sport for newbies.  

I can't base the expenses on real numbers, due to not having anything that's current (foreclosure that's still operating under PM).EGI: $654kOperating Expenses (annual)Adv.

Here are a few examples, divorce, job relocations, health issues, foreclosure pending, and a long list of issues that affect the emotional stresses of their lives.

Mostly from motivated homeowners, and bank foreclosures, which I understand and expect many of those to be in bad condition.