Short Sales and Foreclosures
Distressed Homes in Default
Not all homes that go into default go all the way through foreclosure. Many sell before the notice of default is finalized. Home buyers and investors are attracted to short sales and foreclosures because they want to buy a home for less than market value. Sometimes sellers in default and buyers who want a short sale or foreclosure can see eye-to-eye and enter into a profitable transaction for both parties.
http://homebuying.about.com/od/4closureshortsales/qt/0507Dis...