The slowing real estate market in 2006 will provide the first real price opportunities for buyers for the first time in most American residential real estate markets. But don't look for bargain basement prices on foreclosures. Several factors will keep foreclosure prices at points that might not be worth the additional risks involved with them. Experienced foreclosure buyers will still be in the market, and don't underestimate their influence if you end up in a bidding war with them at a foreclosure auction.

Foreclosures come in three basic varieties. First there is the auction or trustee sale which happens after the property owner defaults on their mortgage and the mortgage holder or lender sells the property to the highest bidder at a public sale. The second are the Real Estate Owned or REO property that the lender owns after the owner defaults on their mortgage, the lender manages and sells the home through a traditional real estate agent. And finally there are HUD foreclosures who in turn auctions those properties whose loans have been guaranteed by the U.S. Department of Housing and Urban Development, online. Mark Nash author of 1001 Tips for Buying and Selling a Home offers tips on buying foreclosed properties in 2006.

-Learn how the redemption period can impact a foreclosure. In some states homeowners have the legal right to buy back their property within a state mandated period of time, even after its sold at auction.

-Investigate properties that are near foreclosure. Some investors pick up properties before they go into formal proceedings. These homeowners have fallen behind on mortgage payments but legal remedies have not been initiated by the bank or lender to seize the home. Contact homeowners with direct mail or telephone campaigns. Remember though that if using the telephone, some homeowners might be registered on national Do-Not-Call lists.

-Foreclosures eat away at banking profits. Even though many think that banks would want to liquidate troubled loans, they are not in the business of owning real estate. Many lenders will work diligently with borrowers to avoid the lengthy and costly process of foreclosure.

-Foreclosed homes are not always bargains. According to industry sources foreclosed properties don't sell for significantly less than other homes in most U.S. markets. If your in a high demand market don't expect steep discounts. Don't forget to factor in major repairs and minor improvements that foreclosed homes need. If owners couldn't pay the mortgage, they couldn't afford the maintenance, and often trash the homes in retaliation.

-Experienced investors who understand the risks buy the majority of properties sight unseen at public auctions. Auctions though can be risky for first-time investors. Many new investors aren't aware that along with the property price come the unpaid taxes, liens and second mortgages that they are required to pay to receive title. And evictions can also come with the property, now you've just become a landlord. Know and understand landlord-tenant laws in your state before jumping into a sight-unseen foreclosure auction.

-The Internet is a good resource for finding more information on foreclosures. Visit web sites that will offer you lists from public records of those behind on their mortgage payments, for a subscription price. Contact experienced real estate agents for an inside line to problem properties before they have legal entanglements.

-Don' be afraid to knock on doors. It might be old-fashioned, but getting out and knocking on doors might be a way to learn first-hand about potential foreclosures. Develop ways to qualify problem homeowners by property condition and follow-up with a professional but helpful style.

-Retain an real estate attorney. Well worth the cost to trouble shoot the many legal hurdles to owning a foreclosure property.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor