Hi Eileen. This advise maybe a little late, but you know what they say:-)
The biggest problem when competing with short sales and foreclosures are usually the appraisals. That being said, there are many strong buyers looking for nice homes and they don't want to work a short/bank owned sale. Those homes are usually distressed, require a lot of work and the process is not very smooth.
If I can be of any assistance please let me know.