Activity is really up and many deals are getting done!  I still see many buyers willing to pay anything as long as the property is advertised as a short sale or a foreclosure.  Many people continue to buy these properties, especially foreclosures and not do so well.  Bottom line is you must know the current value and remember that the bank must approve all short sales and many times will make you wait months and then ask for more money. 

There are opportunities in both short sales and foreclosures but you must educate yourself and know your values.