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5 Best Places to Buy Foreclosures in 2013

Third-best market: Albany/Schenectady, N.Y.

New York State's capital suffers from the same long foreclosure process and distressed-property backlog that's hitting Gotham, according to Blomquist.

RealtyTrac found that Albany has an 86-month supply of seized homes on the market -- and saw foreclosure filings soar 107.7% in 2012.

All told, foreclosure buyers in this 871,000-population metro area some 120 miles north of New York City got 35% average price breaks during 2012's first 10 months. RealtyTrac predicts more of the same in 2013.

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