One of my favorite questions I get asked daily in this Real Estate market is, "Do you have any foreclosures?". I think alot of people are confused about the term foreclosure and are using the word as a overall word in the market place. Huh? Let me explain. When some one asks me do I have any foreclosures, I ask them what do they mean. Each individual has a different idea of what is exactly a foreclosure. For instance, they maybe looking to buy a home before a Home Owners goes completely bad with the Bank. Completely bad with the Bank now means that they are being escorted out their front door. This then would be a pre-foreclosure and a contract taken at this time would most ikely be a short sale. If the Home Owner is not making anything to walk away from the home, then it is a short sale. The Home Owner may then be asked by their lender to sign a committment letter to pay the lender back the difference the lender is losing. From experience most Home Owners walking away with nothing are going to tell the lender to take a flying leap. Then we have the actual foreclosed property. Great deal, think again. In order to by the foreclosed property before the bank buys it back you must by it at the Sheriff's sale, or as they call it, "on the steps". This home is locked out to the public so you do not get to see the home before purchase nor are you protected from any liens. You must do your homework first before buying these homes to see if you are not only buying someone's home but their problems. Ok, so it would be a great deal to buy the home on the steps, you need 10% that day in a Certified check and the rest of the money in cash within 24-48 hours depending on the county. Got cash, done your research, got home. No cash, bad research, got a big problem. Then there's REO's. This is where the lender bought back the Home at the Sheriff's sale because no one else did or wanted too. These homes are on the Market place with a Realtor, you do get to see the home first, and can make an offer. 9 times out of 10 they are priced extremely good already, some have been slightly cleaned up, others watch where you walk. These are good deals. Now, how low will the bank take for a home they own? Be fair otherwise they will hang onto it until someone else is fair. Another 50% off, is EXTREMELY rare and only if the home has been sitting almost over a year. Otherwise they normally price it so that you are getting a deal and still bringing the home up to par with the others around it or at least alittle lower. So, do I have any foreclosures, sure what stage would you like that in? Whatever stage MAKE SURE your agent has done these before otherwise everyone could be in big trouble. There is a reason everyone does not do this purchases!!!!