Real estate investors have long regarded foreclosures as an opportunity to scoop up cheap real estate — assuming you could actually get your hands on foreclosed property. Traditionally, demand for distressed properties (at least the desirable ones) has far outweighed supply. Now, the opposite is true. In fact, you could probably limit your house search to foreclosures and still have your pick of houses and neighborhoods.

But be advised: Buying foreclosed property comes with its own set of hitches and hurdles. Just because a house is deeply discounted doesn’t mean it’s necessarily a great deal. Here’s a snapshot of what to expect before, during and after foreclosure.

Short sale: Simply put, this is when sellers are willing to take less for their home than they owe to the bank. Buyers can find bargains in short sales, but they should also be prepared for some hassles. Because the seller’s bank needs to approve the sale it can add weeks, even months to the closing process.

Pre-foreclosure: When an owner falls behind on mortgage payments, the bank makes the default public record. At this stage, foreclosure isn’t a certainty, but it is pretty likely. You can search the local county clerk’s office for houses in pre-foreclosure and make an offer directly to the buyer. There are some advantages to buying now rather than waiting for the house to go into the final stages of foreclosure. Not only will you have slightly more time to inspect the house and line up financing, you’ll most likely be dealing with owners who are still cooperative.

Auction: There are different styles of auctions, but most take place at the county courthouse, where properties are sold to the highest bidder. Houses at auction are priced to move — especially now that the market is flooded with foreclosures — but they’re also sold “as is” and with few or no disclosures. Many of these houses come with liens, which buyers have to pay before taking possession of the house. Making matters more difficult, former owners may still occupy the house at the time of auction. When they finally do move out, it’s not uncommon for them to pack up everything they can, including anything from appliances to copper plumbing.

Bank-owned property: If a house doesn’t sell at auction, it gets reclaimed by the lender and listed with a broker who specializes in so-called “real estate owned” property. This may be the easiest way to buy foreclosed property, but it’s not necessarily the cheapest. At the same time banks are eager to unload the property, they are also looking to recoup their losses. That said, don’t be afraid to flex your negotiating muscle, especially in this market. The longer the house has been sitting, the better your chance for bargaining.