foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
There have been instances where the bank does not move towards recording the deed in their name because they don't want to be responsible for the taxes on the property. Even though the banks went through with the foreclosure proceedings, it doesn't mean that the foreclosure actually went through...and, it would appear if the deed was not recorded in the new owner's name that there may have been some issues with the foreclosure not being completed properly.
Unfortunately, there were over 30 million home owners who were caught with upside down values on their homes - thus the great amount of foreclosures and short sales on the market today - they are a result of the 2004, 2005, 2006 boom and the 2009 crash in the market.
Hope this helps!