As the housing crisis continues, hundreds of thousands of foreclosed properties are now on the market nationwide and real estate experts say buyers can purchase these homes at bargain prices, sometimes $50,000 to $100,000 less than other similar properties.

But, buyer beware. A foreclosed property is not for buyers wearing rose-colored glasses. Purchasing a foreclosed property is like walking on thin ice: If you go into the deal green, you could lose your entire investment. That's why real estate experts strongly recommend hiring a professional who specializes in buying foreclosed properties. A good agent can sift through the weeds and find the nuggets of gold.

"If you do it yourself, you're swimming with sharks," said Sara Benson, broker and co-owner of Benson Stanley Real Estate on the North Side.

"An experienced agent can see flaws that inexperienced buyers might not see," said Benson, who specializes in foreclosed properties and posh residences on the North Side.

Finding a foreclosed property worth purchasing takes a lot of work. Many foreclosed homes and condos might be located in a bad neighborhood. A buyer should sway away from buying a foreclosure in a neighborhood with a lot of other foreclosures since it will take too long, if ever, to get the price appreciation back. You also don't want to buy a foreclosed condo in a building with other foreclosed condos due to it likely having inadequate reserve funds and a weak condo board.

According to RealtyTrac, a Web site specializing in tracking home foreclosures nationwide, there were roughly 7,900 foreclosed properties in Cook County in January, which represents about 1 in every 274 houses.

In today's housing market, buying a foreclosed property is the avenue to take, says real estate broker Bernadette Carter of Coldwell Banker Residential Real Estate.

"If the property is distressed and you are handy, you can build instant sweat equity," she said. "And, if it is not distressed and in good shape, you can be the party that takes advantage of someone else's equity gain."

One of the best places to start is to check out different bank Web sites, Carter says, while Benson advises starting by asking your broker or real estate agent or check out foreclosure auctions.

"Most of these Web sites have links to the agent listing the foreclosed property," Carter said. "Contact that agent or your own agent. You may have to pre-qualify with that particular bank. Although ultimately you can work with whatever lender you choose. When looking online, keep your eye out for a property with 'price reductions' or 'good deal.' If it's a good deal, buy it right away after you know what you're doing. Remember, when it comes to foreclosed properties, you snooze, you lose."

To give an idea of a "good deal," here a few of the foreclosed properties Coldwell Banker currently has on the market in the Chicago area:

••4710 N. Central Park: This brick 2-flat on the Northwest Side is listed for $186,900. The building sold for $428,000 in 2005. The first-floor unit has 3 bedrooms and a finished full basement. The building has a 2-car garage.

••1410 Fowler, Evanston: The 3-bedroom bungalow is listed for $134,900. It sold for $240,000 in 2005. The brick home has a family room, partially finished full basement and a 2-car garage. (Note: At press time, this home had sold for lower than the asking price.)

••110 S. Forest, Palatine: This 3-bedroom foreclosed split-level home is listed for $249,000. The home sold for $285,000 in 2005. The brick home has a family room, partial finished basement and 1-car garage.

Chicago resident Patrick Mayerbock recently purchased and moved into to a foreclosed condo on the 5400 block of West Higgins on the Far Northwest Side. Mayerbock, 24, is a software licensing specialist by day and a law school student at night.

Mayerbock previously lived in a rental apartment with roommates before he decided to buy a condo in the 8-unit building.

"I was looking to buy a foreclosed, distressed or short-sale condo," he said. "Because of my law school background, it helped me to know what I was doing. Plus I read a lot and am self-educated."

Mayerbock started his search online, using the area code 60630. "I got lucky right away," he said. "This condo popped up and had a contact agent, so I called him. I would never considered buying a foreclosed property on my own. You definitely need an agent who knows what he's doing. I filled in the gaps myself by using the law school computer system to research the property's history."

That history search popped up a potential problem. It indicated that the owner of the foreclosed condo had not paid his assessments in a long time. "I was afraid I'd have to pay the back assessments because there is an Illinois statue that gives banks leverage for several months. But I ended up not being responsible," Mayerbock said. "I also found out the previous owner lost the condo because he defaulted on the mortgage. It wasn't due to structural damage. So, that was good to know."

Mayerbock also checked with the building's condo association to make sure they had adequate reserve funds and hired a building inspector to make sure the condo was in good shape.

"The most important thing to remember when you're buying a foreclosed property is that you buy it as is," he said. "So, you need to know what's wrong with it upfront. My condo had a few problems, but I'm kind of handy and fixed some of the problems myself."

Although Mayerbock declined to reveal his sales price, he says he believes he saved $40,000 to $60,000 by buying his foreclosed condo. The condo previously sold for $159,000 in 2005.

Despite Mayerbock's success story, he cautions people who are considering buying foreclosed properties.

"A normal person doesn't have enough knowledge to buy these properties on their own; you need to find a trusty real estate agent. Be willing to make minor repairs," he said. "And make sure you don't jump into anything too quickly."