I must explain to you that firstly the properties that come up in the auctions are over 90% coming from bankrupsy courts or local goverments in the first place and as such offer no greater or lesser legal protections than buying them direct in first place. Secondly the smart investors who know where and where not to put their money know about these properties several months before they ever come up for auction have the opportunity to buy them then.

E.g it is possible to buy appartments in Berlin, direct for €3,000 - €10,000, for 40 - 60 sqm. Whenever you see them come up for auction start prices are usually €15,000 +.

The auctual auction start prices are set in most cases higher than you could have originally bought them for direct and usually they go higher than the start prices. Usually you will find that are good reasons why nobody has bought these properties prior, either they are going to cost a fortune to restore or the next to a rubbish tip or other such reasons.

Chances are no matter how good a bargain you appear to come accross at the auction only reason someone else hasn't bought it is there were far better deals to be had.