I've never bought a property from auction. That said, here's a few things I do know. Besides all the potential maintenance issues, the transaction itself can more difficult than usual.
If you're not liquid enough to pay for the property at the time of auction, arranging financing can be tricky. Often there isn't enough time to do so. Even when there is, getting the loan closed can be problematic. Many lenders want an appraisal that includes interior inspection/photos. Getting access to the property can be a problem. HUD, for example, has been known to not let anyone in a foreclosed property until after the sale. Was the previous loan an FHA loan?
There's also handling the auction wisely. Do you homework! Have a very strong feel for full market value of that property. If it needs work, also know what it's worth in it's current condition. Go into the auction with a "max bid", knowing you will not exceed that price. Sometimes bidding can get emotional. If bidding gets out of hand, walk away.
If you don't have access to someone that has done this before a number of times I would suggest speaking with a real estate attorney early in the process.
