short sale, foreclosed homes If you're in the market for a good value in a home, think about buying a short sale. These are homes whose owners owe more on them than the home is presently worth, so they have negotiated with the bank to sell the home for less than they owe. Generally, these homes are a great value, and are in good shape, too. Sometimes foreclosed homes need a lot of maintenance and repair, so in the long run, a short sale can be the better investment, especially if you don't like to fix up homes or don't know how to.

When you buy a short sale, you have to submit a bid, not to the buyer, but to the bank. Sometimes these homes get multiple bids, so if your heart is set on one particular home, make sure your bid is a reasonable one, both for you and the bank. If you submit too low a bid, you'll no doubt lose it, so work with an experienced Realtor on buying your next home. Make sure that they have short sale training, and can skillfully negotiate with banks.