Big profits in foreclosures?

With the subprime meltdown in full-swing and foreclosures hitting record highs, it's no surprise that more than a few investors are looking to the field as a way to make some money in the time-honored tradition of the vulture investors.

Just a few years ago, "flippers" -- real estate speculators who bought homes with little money down in the hope of fixing them up and selling them at huge profits -- were the glorified subjects of television shows. But the declining market has rendered that field obsolete and the new heroes are the foreclosure investors.

According to The New York Times, however, there are numerous pitfalls: Oftentimes, foreclosure investors buying homes at auction don't have time to do thorough due diligence on the properties, and can find much more serious structural problems than they had previously thought. The titles can also be murky, leaving buyers owing thousands on properties they thought they were buying free and clear.

The foreclosure market is dominated by professional investors, and most of the "gurus" offering seminars on buying foreclosures are charlatans -- if they could train you how to make money doing it, why are they doing seminars? Why aren't they keeping the secrets to themselves, and spending their time getting rich!