At the risk of sounding self-serving, we here at RealtyTrac earnestly contend that 2014 will represent one of the best years in recent memory for a low-risk, high-reward foreclosure purchase.

Sure, foreclosure activity is down to its lowest level in seven years, but it's when foreclosures are rare that they represent the least risk because they aren't threatening to crater the housing market again anytime soon. Meanwhile, home prices in nearly every market nationwide have hit bottom and are now rising, which translates into a bigger potential upside for a foreclosure purchased at a discount.

With that in mind here are the top 10 secrets to successfully buying a foreclosure that we've discovered over the last 18 years:

1. Recognize that foreclosure is a process, not an event.
Many people think of foreclosure as the event where a homeowner loses his or her home. It is in fact a process that can extend over many months, and in some cases even years. This is a simple recognition but it's fundamental to creating a successful strategy for buying foreclosures in any market.

Learn more in our free Real Estate Guides.

2. Know the three distinct foreclosure buying opportunities.
While there are myriad methods used to successfully purchase a foreclosure, all of them boil down to one of three basic strategies:

buy from the homeowner during pre-foreclosures;
buy at the public foreclosure auctions;
or buy post-foreclosure bank-owned properties.

3. Look for both listed and unlisted foreclosures.
Yes, it takes more work to pursue unlisted properties, but it can pay off by giving you a massive jump on other buyers and investors - particularly in a market with a shallow supply of homes for sale. Of course, listed foreclosures also represent good opportunities and come with the added benefit of a more direct path to purchase. You can filter by listing status when you search foreclosures on RealtyTrac.

Find hidden foreclosures on RealtyTrac.com.

4. Find an agent not afraid to use the f-word.
Not all agents are qualified - or interested for that matter - to help you successfully pursue and purchase a foreclosure bargain. Find one who doesn't cringe when you bring up foreclosures. We've identified plenty of such agents across the country with our RealtyTrac Agent Network.

Find an agent on RealtyTrac.com

5. Understand your financing options.
Some folks assume that buying a foreclosure means paying with cash. While that's true in most states if you purchase at the public foreclosure auction on the courthouse steps, you can finance your purchase of foreclosure when you buy during pre-foreclosure or from the bank.

Find out more in our Finance Center.

Visit RealtyTrac.com to see secrets 6-10.

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