If you have time, meaning if it takes a few months and a delay isn't causing a great problem then short sales or foreclosed properties (REO's) might be of interest. Those may be great deals but there are pitfalls as has already been described. You need to work with a Realtor who understands these processes. I would also suggest closing with an attorney which will be an additional closing cost for buyers. Some lenders selling their inventory insist on their own closing agent. Still, you may want to do your own check about marketable title before closing on a property.