It's still possible to buy a foreclosure and make it the home of your dreams. It's just harder these days.

Investors, both individuals and national corporations, are rushing into the market with the intent of turning foreclosed properties into cash-generating rental units.

Lenders are only slowly listing homes for sale at a time when the general appetite for home purchases is increasing. Demand for properties is leading to bidding wars and higher prices that aren't necessarily justified by appraisals, putting deals at risk.