With prices down, real estate agents across the country report that more investors are interested in acquiring properties this way. But it isn't simple or quick. There is a lot to watch out for, such as many issues can slow your process.

    Short sales, which occur before a foreclosure is finished, can be daunting. They involve both lender and homeowner. Buyers expect a foreclosure sale, of property a lender's already repossessed, to be smoother. That's not always the case. Most lenders need an OK from any secondary-market owners for foreclosure sales that involve a loss. And if the loan carried private mortgage insurance, its guarantor may also need to sign off.

    There are many great deals on REO home out there to be made.  But is it really worth the wait or hastle for the offer or financing?  Many borrowers turn to other homes to purchase for the simple fact that they don't want to wait or play this time comsuming game.