Bank Owned Properties / REO's (Real Estate Owned)/ Foreclosed Is property that goes back to the mortgage company after an unsuccessful foreclosure auction. Banks are not in the business of holding real estate so, their goal it sell it as quickly as possible to get it off their books. The price a property is listed at is basically the suggested list price from an appraiser or a real estate broker. You are able to make a "reasonable" offer at any amount so, don't let the list prices scare you way.

Short Sale Is a lender-approved sale in which the proceeds from the sale are not sufficient to cover the mortgage amount(s). Typically, short sale is done to avoid foreclosure and all the high costs involved. Even though the seller may approve the offer amount, the mortgage lender(s) must also approve the offer. Some buyers have waited months for a deal to go through in a short sale transaction. Banks are currently working to improve the turn around time from contract to settlement.