Which is better?
The "process" of buying a foreclosure is basically the same as buying a home that is not in foreclosure. The difficult part of buying a foreclosure is determining the right price to buy at. Just because it is a foreclosure does not mean it is a good deal. Furthermore, foreclosures regularly sell higher than the list price. Do your homework on the neighborhood and the comps and offer a price that makes sense. Trying to "steal" the house will lead to many offers and no home.
A short-sale is a test in patience.....both with the listing agent and with the lender as there is a good chance that the bank has not approved the price the listing agent has set. If this is the case, it is possible to write an offer at or above the listing price that will not be approved by the lender (after several weeks of waiting). If you decide to go the short sale route, provide as much info along with your offer as possible so that when the assigned negotiator looks at the "full package" it looks like a slam dunk. Include the offer, Short Sale Addendum, copy of deposit check, pre-approval letter, proof of funds, and even elude to FICO scores. If the lender perceives it to be easy he/she is more likely to push your deal.
Lastly, make sure to probe the listing agent and determine that he/she understands the process and is willing to be aggressive with the lender. Often times the squeaky wheel philosophy works.
Good luck!!
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