With all of the economic troubles the country has been facing, it should come as no surprise that some savvy investors have been taking advantage of some great real estate deals. As housing markets around the country have reached lows that haven't been seen for years, many experts agree that there has never been a better time to purchase real estate. Luckily, you don't have to be a millionaire or a real estate tycoon to take advantage of these great prices. In fact, if you are simply looking for a great home for you and your family, purchasing a foreclosure just might be the answer. By following these five simple steps, you may soon find yourself living in the home of your dreams at a price that fits your budget.

Step #1: Decide Where You Want to Buy

There are many great foreclosure properties out there to select from. If you don't have your heart set on living in a certain area and you are simply looking for the best foreclosure markets in the country, you might want to consider one of these top foreclosure markets:

• Greeley, Colorado

• Detroit, Michigan

• Miami, Florida

• Indianapolis, Indiana

• Denver, Colorado

Of course, each of these markets is vastly different and the types of homes you can expect to find there will vary significantly. Therefore, you need to consider your current as well as your long term plans when deciding where you will buy.

Step #2: Obtain Financing

Getting your financing squared away before you start your property search is a good idea, as this will tell you exactly how much you can afford to buy. By being pre-approved for a loan, you will also be able to move quickly on the purchase. When it comes to purchasing a foreclosure property, having the money in your hand will significantly increase your chance of being able to purchase the property.

Step #3: Get an Agent

Although it is possible to purchase a foreclosure without the help of an agent, hiring a real estate agent will simplify the process. Not only will an agent be able to help you locate foreclosure properties, he or she will also be able to guide you through the legal process of completing your purchase.

Step #4: Contact the Owner

Contacting the owner of the property can be trickier than you might think, as the process changes according to the status of the property. If the property is in pre-foreclosure, for example, you contact the owner directly. If the property has been put to auction, on the other hand, you will have to place a bid on the property at the auction. In addition, you generally have to pay cash at the time of the purchase. Finally, if the lender or a government agency has taken possession of the property, you will need to contact that agency in order to discuss the possibility of making a purchase.

Step #5: Inspect the Home

It is essential for you to thoroughly research the property you are considering buying. Otherwise, you might be taking on a big problem without realizing it. In addition to checking into any financial liens that might have been placed on the property, you also need to get the property inspected in order to make sure it is still in good condition. Contrary to popular belief, foreclosures are often in excellent condition. Nonetheless, a thorough inspection is necessary in order to know what you are getting yourself into.

After successful completion of these five steps, you are now ready to make an offer. If everything has gone right, you can congratulate yourself on becoming the proud new owner of a great piece of real estate at a bargain price!