Buy it! If it's credit issues I work with people who have credit issues all the time that have gotten approved. I am with The Lenders Network, we are kind of like the Lending Tree for people with credit issues, self employed or other issues most banks cannot approve we have a few lenders that go down to a 580 for FHA loans.... more
I have a short sale currently under contract waiting for the bank to approve the sale. About 2 weeks ago my client got a Foreclosure letter too. I call the bank and was told if they are working on a short sale they will hold off on the foreclosure until they make a decision on the short sale.
You or your Realtor should call the bank and ask how they handle this situation.
Hope that helps.