What are the pro's & cons of buying EITHER a Short-Sale, or Foreclosure?

**WHB Solutions** · 07-03-2010, 12:48 AM

Buying a short sale can take a long time and you might not get the home in the end. If you do pursue a short sale, make sure the people involved are competent in processing and negotiating short sales. Demand frequent updates so you can decide if you want to back out. I'd say give at least 3 months to see how the process goes. The advantage is that there is less competition because many do not want to wait a long time and possibly not even get the home.

If you buy a foreclosure, an REO real estate owned, bank owned property, the title will be clear and you can easily get set up with a loan to purchase the property. There is no wait for a bank approval, it's almost like a regular listing.

Prices between a short sale and REO can both have benefits of good deals. Right now, REOs are getting multiple offers in some areas which have been due to the tax credits everyone is trying to take advantage of, which makes the home prices near or above market price. Short sales, you can actually get a price lower than market but you will have to wait a while to close the deal.