Cash heavy investors are at the ready and are buying up REO homes to flip them as standard sales.
When they flip them they do not sale them below market value. It could very well be re-listed at a higher price than it was as a short sale.
So, if you really like it and it is priced within your budget try to buy it as a short sale, waiting for it to become a REO may not be the best thing to do.
Best of Luck to You.
Kawain Payne, Realtor