It's all over the news—the current housing market is in a state of turmoil. In fact, foreclosures have hit the one million mark and risen over 120% in the last year alone!

ARE there great real estate deals to be had because of this? Sure. Times like this mean bargains galore.

But whether you want to buy a home for yourself or as an investment property, you need to be careful NOW more than ever.

So here are a few very important (and often overlooked) "rules" to keep in mind when buying a foreclosed home...