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Investor Luis Valdeon says, "Air conditioning and central air, it's got a big addition here and it's got another house in the back."

Luis Valdeon didn't buy this home from a realtor: he bought it at an auction for back taxes. And he bought it cheap.

"Yeah, this is a great deal, I bought this one for a hundred fifteen thousand and it's worth two hundred and twenty thousand," said Luis.

While it's getting all the headlines these days, foreclosure isn't the only way a homeowner can lose their house.

Foreclosure auctions occur when people don't pay their mortgage. Auctions like this one occur when people don't pay their property taxes.

These auctions, or variations therefore, periodically occur nationwide. They can be a good way to find property cheap...but you have to know what you're doing.

Luis says, "I look at it. It's got a new roof, new windows.. looks in very good condition. Second thing I do is go to the office and check it out. Make sure there's no other governmental liens on it. And fight until you get it. That's part of the business. If you're too slow, somebody is going to take it."

Bottom line, buying property like this does require a lot of cash and a little bit of knowledge too. The cash, I can't help you, but the knowledge I can. I've got tons more information right here at moneytalksnews.com. I'm Stacy Johnson.