I had my eye on a domain and used Godaddy's system. The domain finally expired and I started receiving emails...I was pretty stoked. I got my first email letting me know the domain had expired but the owner had x amount of days to renew it. 30 days later I receive an email saying that the owner did not renew it but they have a 10 day "grace period" where they can buy the domain name back at an elevated price. This entire time I'm working on the logo and the website. I wanted to launch it as soon as I had control and could changer over the DNS.
Around 45 days later I receive an email saying the owner did not renew and did not opt for the grace period. I figured it was only a matter of time before Godaddy transferred the domain to my account. When you visited the domain it did the standard Godaddy "this domain has expired...blah blah. I waited another 15 days and still nothing. I decide to call Godaddy to ask them what was up. The support rep told me that there was not transfer information for that domain and it was only showing up as expired not deleted. Something about how the original owner had to login to their back office and delete the domain. It didn't make any fucking since but whatever...I've waited this long what's another couple days. One random day I decide to check the URL and there's a fucking live website on it and the problem is; it wasn't MY website.
I get on the phone with Godaddy support and they explain to me how someone else backordered the domain before I did therefore they got it. They apologize and credit my account back what I paid. I was pissed that I had done so much work and didn't get the domain. The answer to your questions is yes it works. It just depends whether it will work for you or against you.
