"If you are planning to buy a short sale home, you need to have two things in abundance - patience and understanding. It's different than buying through a regular transaction. The buyers who don't understand the process end up getting frustrated and disenchanted with it. Please talk to your real estate agent to find out if a short sale is for you."

Short Sale* - Short sales are defined as a transaction where title transfers; where the sale price is insufficient to pay the total of all liens and costs of sale; and where the seller does not bring sufficient liquid assets to the closing to cure all deficiencies.

*Defined by NAR

REO*- An abbreviation for Real Estate Owned, and is industry jargon for foreclosure property repossessed by banks or lenders. If a lender or bank is the highest bidder at a foreclosure auction — or if no third party bids at the auction — the property reverts back to the lender and becomes an REO. REOs are owned by banks.

*Defined by Realtytrac.com

Considerations for Purchasing a Short Sale

• Timeframes for purchasing Short Sale properties can be lengthy.

• Short Sale properties typically sell “as is.”

• While contingencies protect you, as a buyer, lenders may not look favorably upon offers with contingencies.

Considerations for Buying an REO Property

• The condition of REO properties may reflect some neglect and the need for repairs.

• The process is bureaucratic and the approval process for offers can be slow.

• Be prepared for, but not afraid of, the additional paperwork involved.

• Prepare for “as is” and how that may effect the transaction.