When a home is sold as a short sale, it means that the seller has made arrangements with his lender to sell the home for less than what he owes on the mortgage. A short sale is different from a foreclosure in many ways. The short sale helps to save the seller's credit and in many cases, properties that are in a short sale situation are kept in better condition than those that have been foreclosed on because the seller still has vested interest in the property.

A foreclosure occurs when the owner has no longer been able to make his mortgage payments and the bank has taken back the property. Many foreclosure properties for sale are in abominable condition. Often times the people who owned the home wreck the house before leaving it, tearing out appliances, punching holes in walls and ceilings, and allowing animals to defecate on the carpet.

There are some good deals to be found with short sale and foreclosure properties, but it is the buyer's responsibility to understand exactly what he is agreeing to when purchasing a home in either of these situations. Also noteworthy is mentioning that offers to purchase short sale and foreclosure properties can take weeks, if not months, to receive a response from the lender, so if you are on a specific timeline, be sure to take this into account.

Looking for a good deal? Check out our picks for this week's Best Buys.

Thinking about buying a foreclosure or short sale property? Take advantage of our Free Foreclosure Lists. Once you sign up for this free account (and we won't bombard you with emails), you can search for distressed properties anywhere in the United States.

Wishing you sunshine everyday and the home of your dreams,
Jeri