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You know about the secured loans that the banks offer against any property which is placed as collateral. This serves as a security for the bank that it can recover its money even if the borrower defaults. The property which is placed with the bank is auctioned to recover the money owed by the borrower.

There are many cases wherein nobody comes forward to buy the property above the minimum amount for the property given by the bank. Thus, these properties remain with the bank. You can later approach the bank to buy this property at a lower rate.

Banks are not interested in keeping assets with them. They need cash. If an auction does not fetch it more than the announced minimum value, chances are the bank keeps the asset with it. You can approach the bank to buy the foreclosure. In most of the cases, the bankers will agree as they need to recover at least a part of money they lent to the borrower.

This method of approaching banks and offering a little more than what the bank proposed at the auction helps you get a property very cheap. If you are able to convince the banker and get the property, you can make some additions to it and sell it at much higher price.