I work for an agency headquartered in Palm Beach Gardens and we have in-house experts on title, mortgages, REO, foreclosures and shortsales. It makes it easier for us agents but also for our buyers & sellers. I recommend that you pick a buyer's agent with resources to guide you through every step of the transaction.
If a deal sounds too good, it probably is. Whether you go for a short sale or foreclosure, issues I've come across lately include removal of plumbing & doorways, severe mold that clearly has been recently painted over or bare concrete floors with recently removed carpets. There are timeline issues for the title agents that even highly qualified title agents can't cover. In some cases, IRS liens are higher than the value of the property.
I 100% agree with the agent who said bankowned homes are the best deal at this time.
Susanna Malmgren-Grubb, PA
The main risk for you is your time.
Short sales may not be approved by the bank for a wide variety of reasons.
On the other hand, Foreclosures are owned by the bank and they are ready to get the home sold.
In a recent BLOG I wrote about the seven reasons a short sale may not be approved.
If you work with a skilled agent you may find a loved and well maintained home at or near the price of a foreclosure or short sale.
Hope you find a home that will make you very happy
As long as you are not buying at the courthouse foreclosure auction you shouldn't have any issues with the title because you will get title insurance (paid by the seller).
Your best deal will usually be a home that has actually been foreclosed on by the bank and the bank is now selling it. You MUST make your offer the first day it comes on the market so do not wait until the weekend to see a new bank owned listing that fits your criteria.
Hope this helps.
Always have a qualified title agent or attorney review your policy.
By the way. Get a good agent to guide you.
Please see my blog for tips on buying a short sale
Please see my other blog for tips on buying a bank owned home