Congratulations on starting your home search. REOs and shortsales are in the news, and people think that a first time buyer can get deals and steep discounts with REOs and Short sales. More often first time buyers get disappointed and waste time trying to buy short sales. The reason is that there are investors out there that have cash, and swoop in to buy REOs and short sales that don't need to do the inspections that a mortgage lender requires. Investors have ready cash, know what they are lookiing for in a home and how much they are willing to spend and are more sophisticated because they've done this before, and act quickly.
Therefore the best deals are swopped up and in escrow before most buyers even see a house, leaving the problem prone houses leftover for novice buyers. Permit problems, lawsuits, mold, and shoddy workmanship can be the reult for the unwary beginner buyer, and that is why working with an experienced agent (like me) is important. Also its a good idea to look at all sales, including Standard/equity sales, which often have the benefit of having a seller who has taken great care of their home over the years.
About the answer: Linwood Fullam is a Burbank resident working as an Agent at Rodeo Realty, Studio City. He specializes in Burbank, Toluca Lake, Studio City, Sherman Oaks, Encino, Hollywood Hills, Silverlake, and Valley Village areas. He lives in Burbank on the Toluca lake line. He enjoys running in Griffith Park, dining at local restaurants, and working out at Toluca Lake Tennis Club.