My question is about foreclosure home. What I want to know is how does the process for buying foreclosure homes go? I am a college grad and I have between poor and fair credit because of college loans and would like to know in buying a foreclosure home does credit play a big factor? And does if make getting a load for a really cheap home roughly around 50,000 easier.

What would be better is to find a home that is in the process of foreclosure and see if you can get the owner to allow you to assume the mortgage.

In most cases, foreclosures are sold at auction. The buyers have to show that have either the cash or financing in place to make the purchase.

Its highly unlikely that you will find a huge bargain. If the house is in good condition, bids will start at or near the mortgage balance. If the balance is low, then its likely the owners would have been able to sell it rather than lose it. So you will find that bids will start at or near market value.

In this tightened credit market, you need at least a 680 credit score and 10-20% down.

Foreclosures (really bank owned, not a short sale) aren't even a really good deal , because banks want to recoup all they can, and since most homes that are foreclosed on are 'underwater' (the loan is for more than the property is worth) a bank isn't going to get you a great deal.

REO (real estate owned) and tax sale homes are usually sold to people who can pay cash -

The one place where you can do well right now is with people who have significant equity in their homes and need to sell because they have lost a job or other reason that will make them desperate enough to lose money in this market. This usually occurs pre-foreclosure, when the homeowner wants to avoid a foreclosure and bankruptcy.

Finding these aren't easy - you need to study a neighborhood to understand what other homes are really worth (not what they are selling for - look at what they have sold for recently). Trulia.com is a great site for this.

If you have over 680 credit score and money to put down, your buying at the right time. If you're in NJ, I'm a licensed Realtor and can help you find a property, I might even invest.