As most of you know, my mom is trying to buy a house. It seems every house she likes, there is some reason that it doesn't work out. The last two were foreclosures, and that seems to be a common thing these days. My mom likes to look online for houses, and then we drive around and look at them in person. When she finds one that she likes, she contacts her realtor, and they go and look at it. She has found some beautiful Studio City Homes, but doesn't really want to move out of state. Her realtor has been telling her a little about short sales, and it sounds like a great deal. In a nutshell, this is where the seller of the home shows their bank that they can no longer pay their mortgage, and instead of going through with a costly foreclosure, the bank agrees to settle for less than is owed on the house. It sounds to me like this benefits the buyer, who can get the house for a steal.
I hope my mom can get in on one of these deals.