Keep It Safe

Is there a catch? You bet!

Don't Be Mis-Guided

If you respond, you're likely to hear pitches for guides to cars and homes being sold in your area at great prices. But the guides aren't always what they're promised to be. And if you buy one, you may end up spending more than you planned.

You'll be charged about $50 for each guide, either to your credit card or through a withdrawal from your checking account. You may even be billed for a guide you didn't order.

Here's how it happens: When you place an order, the salesperson might offer to include another guide as well. What you won't be told is that you'll be charged for the second guide, even though you never agreed to buy it.

In many cases, the businesses bill your credit card or debit your checking account even if you never agreed to buy anything. They get your bank account or credit card information under false pretenses, sometimes claiming that they need the account number to verify your credit history or to "hold" your order.

And when auction guides arrive in the mail, chances are that they contain far less information than you expected. Actually, it's information that is readily available elsewhere for free.

The bottom line: While it's possible to buy cars at auction and homes through foreclosure sales, you won't find the "deals" advertised in auction guides sold by fraudulent promoters.

Auto Auctions: It's Probably Worth Only $500!

Despite claims to the contrary, the auto auction guides some companies sell don't contain specific information about dates and locations of auto auctions or lists of available cars.

Rather, they contain general information about auto auctions and addresses and phone numbers - all of which are available in your phone book. You'll still need to call for details about upcoming auctions.

And, despite what you might hear about auction guides or see in the ads, cars at auction typically sell for their fair market value. These auctions attract a variety of buyers, including used car dealers, so the bidding can get competitive.

At many government sales, the items are appraised before the sale and won't be sold if the bidding runs too low. Indeed, it's rare to find high-end or late model vehicles for sale, especially at "bargain basement" prices. And the truth be told, the cars that sell for $500 or less usually are damaged or junk vehicles purchased for scrap.

Foreclosed Homes: Are They a Good Deal?

Despite the advertisements promoting foreclosed homes for low prices, most of them sell for what they are worth. Most well-maintained homes sell for close to their appraised value. The houses that sell for significantly lower prices often are in disrepair or in unstable communities.

In addition, foreclosed homes are sold "as is." They don't come with warranties, and sellers aren't required to disclose any problems. Buyers, particularly those who don't pay for a professional home inspector before closing on the deal, may find themselves mired in unanticipated repair bills.