Although either can make an excellent investment, both have pros and cons. The foreclosure inventory has been somewhat depleted this year, making these properties more difficult to obtain. Short sales are much more plentiful, but can take an extensive period of time to complete.
The foreclosure inventory is low mostly the result of the robo-signing debacle of 2010. Many of the nation’s lenders chose to curtail their foreclosure activities while reviewing their processes and procedures. There is a great deal of “shadow” out there, and it is just a matter of time before these properties start hitting the market. Some lenders are even considering interim options such as long term rental agreements to deal with the issue of abandoned properties.
The best advice is to develop a relationship with a Realtor that specializes in such properties because the best deals do not last long. Investors represent more than 50% of the buyers in certain market segments and are rapidly scooping up the best deals.
For information on Destin, Ft. Walton Beach, Seaside and Emerald Coast short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com , www.DestinFloridaRealEstate.com or email us at smith@realtor.com