I agree that trustee auction is very risky. You may

save some on the price but the risk can outweigh the actual saving. Only experienced investor can try that. You rather buy them regularly like REO because you can get in and check the house before you buy. You also can apply for a loan and wait for settlement. If you can't get the loan, the contract can be void just like any regular sales. Most of the time REO prices are low enough that's similar to auction price. If you are not experienced in auction, you may over pay on the price.