BEND, Ore. (CNN/Money) – Clearance! The Department of Housing and Urban Development (HUD) is liquidating 4,000 of its foreclosed properties in a special two-day auction at the end of February. Everything must go!

That HUD is selling foreclosed properties is nothing new. In order to promote homeownership, the agency provides mortgage insurance to buyers who otherwise might not qualify for a loan. If these buyers go into foreclosure, HUD pays the lender and claims the property for resale.

In fact, HUD sells 80,000 properties a year on an ongoing basis. Under what's known as a sealed bid process, HUD typically posts the property and takes the highest bid at the end of a day, assuming it's a reasonable price.

The problem is, individual buyers have a tough time participating in these sales because there is usually no time for buyers to look at, let alone inspect, HUD properties. "In very hot markets we hear about people seeing the property, getting a lender and by then the property is sold," said a HUD spokesman.

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This time it's different.

This week HUD posted 4,000 properties that will be sold in a special auction that starts at 10 a.m. February 27 and closes one minute before midnight on February 28. In this case, interested buyers have two weeks to see the property, have it inspected and arrange financing.

"We think it might encourage buyers who want to live in the homes rather than investors," said the spokesman, adding that HUD will pay up to 5 percent of closing fees and give a $500 bonus to buyers who close within 15 days.

As we pointed out in a recent article, "The next big trend: Foreclosure," it's highly unlikely that you'll find your dream home among foreclosed property. If you do, it's likely to need a lot of work.

We searched HUD's auction homes and found plenty of properties that indicated possible mold issues or sewer problems. We even came across a former methamphetamine lab (valued at $20,000) with asbestos and, go figure, fire damage.

Still, assuming you do your homework – not to mention an inspection – it's possible to find a fixer upper at a bargain price. Internally, HUD sets a minimum price but that amount is usually below market value. The houses are typically on the lower end of the market, but a search turned up some properties in the $200,000 range.

To search for property, go to the "HUD Homes" page and click on a state. You'll be taken to a third party site where you can search the special auction.

If you're interested in a property, contact any real estate broker in your area and indicate that you're interested in HUD's special auction. (According to HUD's spokesperson, most real estate offices have at least one broker familiar with HUD property.)

The broker can arrange to show you the property, help you get an inspection and enter a bid on your behalf.

"During normal process discourage brokers from submitting more than one bid," said the spokesman. "In this case they can watch the process and resubmit bids the following day throughout the day."