And would you be more inclined to purchase bonds or dividend-producing stock?

If you have your base money in the stock market and things go south, your entire real estate portfolio could be in jeopardy.

It could have been a down payment on a cheap house, or a very nice chunk of stock.  

Ask them questions, who is the seller, what was the problem, how long was it on the market, how can you reach the sellers, let the agent know that you'll pay them a fee if they help you buy the property before the auction.....this will eliminate your competitionbe pro-active, do your research, don't just show up....you need history of the property before you bid, do this and you will succeed, do not do it and you will over-payvisit the property before the auction sale, try to find the owner, ask questions (sometimes you can stop the auction by making an offer to buy directly for the owner (always check the local laws about buying directly from owners in foreclosurs, you would be safe by using an agent, called arms length agreement, you pay the agent for this service.talk to the neighbors, find out what's going on, the history of the property and the ownership, neighbor usually love to talk and will give you some great insightsIs the house vacant, for how long, can you get inside to do an inspectioncheck the public records, what liens are on the property, what violations, back taxes, water bills etcif buying directly form the seller (using an agent), make sure you have a lien and title report to protect you from buying a property with other liens or judgementsOther ideas for you that may help you understand the auction business better:Contact auction companies (always talk to the principle of the company). 

I worry because my main company holds significant stocks and securities, as well as being the sole owner of all my other properties.

I live in San Diego and wouldn't invest anywhere else but Houston (well soon PHX and Vegas simply because Houston stock is having a hard time keeping up :)Cody

Ask them if they may be interested in investing, know the gains and security vs the stock market or bank where there money most likely is. 

I am not a certified planner but I have been an inventory in stocks, real estate and notes for a while now and would be willing to sit down and share my knowledge.  25 years of stocks 15 years of Master limited partnerships6 years of Real estate3 years notesMy contact info is in my profile and I have nothing to sell so there is not pitch, just offering to help.

Lots of duplex housing stock and the area is still pretty affordable after the bubble.

Its way better to Take a 30 year loan and add extra principle when you can.