Typically the banks have agreed to settle out for less money; which in turn means a better deal for you. The misconception often is that banks have everything to gain and nothing to loose during these transactions. When, in fact, they want to get that property off their balance sheet as bad as you want to buy it. If you do your research there are plenty of deals out there that you can get for under market value. In fact, if your realtor is real savvy than they will be able to find properties that are purchased at 75% LTV. What does this mean you ask? You purchase a home for 200K and it then appraises for 265K. Believe it or not, I am seeing those types of deals more and more frequently. After the COE I am seeing refinances one day on title for the new appraised value. That means a lower rate and investors have been eating them up with a spoon. Also, Perry from Austin, stated below a good point that I agree with too. You go to get a bank owned or short sale auctions and put in the asking price thinking you are getting a great deal, only to find out two months later that you have been out bid and need to raise your offer. In this climate research is key.

AUCTION !!! In Yuma,Az the first one of its kind , I am doing a Subdivision( Puert Bonita ) for Auction Developer want out ! ,and a 15,58 acre lot and 4 homes that were previously Bank REO Properties and did not sell thru the Realtors MLS system.

This is my First time doing something like this , but I think it will turn out well . The banks are frustrated that the homes did not sell !. The paid an up front fee Of $3,500 per home to cover the ads and Auction . the want the homes gone and will take the highest bidder , Some of the properties have no reserve that means if you bid $100 and no one bids higher you Win !!!!!!!!!!

Not always, they can possibly be tied up in litigation which can make closing a long-time process.

REO, Short Sales etc can be a good deal in certain cases. As always do your homework. If you know the property is undervalued then by all means go for it. Understand however that the properties are usually sold as is and you must be able to wait a lengthy period for the bank to respond. The transaction can me a paperwork nightmare, but if you can deal with those things, there are deals out there.

No, no, no... What makes you think that having 50 people bid on a property that is already market price get's the best deal. Think about it... The only "seller market" in America is REOs and foreclosures.

Don't fool yourself. Go out and buy an older home that has some equity in it. That way the seller may be willing to give you a huge discount.