Lots of folks want to buy a short sale or an REO...or think they do.

This is fairly common for folks who are relocating here to Southern California because of the perception that these may be great deals given what they have heard about California foreclosures, and major price adjustments in the last several years. While it is true that prices have come down, substantially in some areas, the belief that you can get a home for 50 cents on the dollar is just not realistic, nor is buying a waterfront home in Carlsbad on the ocean for $500,000 a possibility.

That does not mean that you should not consider short sale and REO (foreclosure, bank-owned) homes, along with traditional resales so you get the full picture of your options. Indeed, you should. But being aware of some of the issues is important so you make an informed decision.

One thing you will often find is that things you normally would find in a resale are missing in a short sale, and even more commonly in an REO.

Read more about buying a short sale or REO to find out what you may be missing...