I found a house I am trying to buy that just went into foreclosure. I want to get this house and also learn about the process for future investments.

Here is the situation.

I am in the houston area. I found a nice home I would like to buy, homeowner was in trouble and was asking 10K over what she owed. She owed 247K and was asking 257K. She wasnt getting any bites. I looked at the property and wanted to speak with her about a short sell. She declined but a week before the house was set for auction, she called and wanted to pursue this avenue. I tried to work with the bank (Chase) but there was not enough time. This is a freddie mac loan btw.

I went to the county auction on march the 6th, the property was put up for bid at 231,300 which is less than what they told me they were going to put it up for. Chase had told me loan balance plus fees so not sure where they came up with that figure. At 231, the house wasnt a bad deal but I think 220-225 is more in the range. I wanted to offer 220 to the bank before the auction. Now no one bid on the house and it went back to freddie mac and their homesteps program.

The house hasnt been listed yet but its with a realtor that I know as she handles most of their freddie mac houses. I talked to her and she does see it on the list but is retiring and turned it over to another lady. I havent talked to her yet as I wanted to know what kind of deal here can be had? The property is on the tax rolls at 220K...it needs some repair but isnt in terrible shape. With the recent mortgage issues going on country wide, I would think freddie mac would want to unload this property. The lady realtor I talked to said freddie mac is difficult to work with and usually turns down bids better early and ends up taking less 6 months later or reauctions it. Anyone have any advice or experience with freddie mac? It seems they mentioned getting two BPO's and the chase guy told me they will take 9% less than that....

Looking for ideas.
Thanks