Banks use Five (5) Levels to Sell a Property:
1. Short Sale
2. Foreclosure
3. REO
4. Auction
5. Bulk REO Sale
At Level Number 1 you get the Pick of the Best Foreclosures on the Market; but, these close slowly and take a lot of patience. At Level Number 5, the Quality is Low and the Prices are Low. At what level should you Buy? It all depends on the type of Investor/Buyer you are and your Goals.
Fixing and Flipping
The Homes are typically "Sold As Is" and require some repairs...these can range
from Minor Repairs to major structural problems, etc. It is best to always have a Professional Inspector and/or Contractor examine the Property before finalizing the deal.
Special Financing
There are many ways to obtain funds to purchase these homes including the Banks themselves. Use OPM (Other People's Money) whenever possible and watch the Debits and Credits closely on the Closing Statements. Don't Overpay!!!