I buy 3 bedroom bank foreclosures for $9500, furnish them and rent them out of $600/week. 

Do you want take ownership through foreclosure? 

The previous owner signed over the property to HUD in a "deed in lieu of foreclosure" transaction. 

Hello @Mark Sewell  in regard to what might happen if nobody claims the property, I'm pretty sure it will go to property tax foreclosure.   

They can let the house go into foreclosure and destroy their credit.Or, option 5: They can sell to me for what they owe.

I ran across what looks like a foreclosure auction close to my primary residence.

That said, my favorite investment area is Lakeside, in far East Austin, and I've actually seen a few auction foreclosures come out of there in the last few months; so if your timing is right, you might be able to scoop something up.Good luck!

I've been in a hurry to get started as soon as I can but I realize I might be shooting myself in the foot by getting in over my head.I've done all I can think of in real estate with the exception of development; options, foreclosures, probate, rentals, flips, wholesales, notes, seller carry (both as the seller and as the buyer), subject to and a few more that I can think of at this moment. 

I would find sellers who were in tax sale, foreclosure, tired landlords, estates, commercial buildings, vacant houses, vacant land, lots and would work on finding owners of expired listings - my approach to them was NOT - let me steal your potential equity, let me make you a low-ball offer - let me let you continue to hurt from your negative experience in real estate - NOPE - my approach was tell me what you want to happen, where would you rather be - how can I help you solve your real estate and financial issue - let me make you some suggestions - no charge - no fee - free.

@Derek Antonissen Im saying be cautions buying now, Prices are inflated, I watched the last crash as a Broker listing foreclosures, and saw plenty of people jump in when the market was good, and many lost them when the market tanked and they could not support the value when they had to re-up there loans.