We bought a foreclosure home through Auction.com recently. The entire process went smoothly. Our transaction closed in 36 days. I was impressed with how professional our contact was with Auction.com, and also with the title company they chose.
Only advise is to be careful about what property you bid on, and decide beforehand what you are willing to pay. Some of the foreclosure banks may be easier to deal with than others. Auction.com doesn't own the homes; they are selling them on behalf of a bank or lender. Ours foreclosure was owned by Bank of America. Everything went smoothly, but took a little longer than buying a cash purchase from a private party.