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Use the forum search feature so search for "short sale". You'll find a lot of comments about the difficulties with buying them. It can take a long time, some can be fairly quick, but rare, and no guarantee that it will work out.
A home in foreclosure has received notice that the owners lender has scheduled a foreclosure sale (called a trustee sale in AZ). The house will be offered for sale at an auction, if no bidders, then the lender will take over ownership and sell it as bank owned. The time until the sale varies from state to state (90 days in AZ). Not all short sales are foreclosures.
A bank owned home normally has a much quicker sale process, much like a normal home sale. However, the bank will sell the home "as -is", with much less protections for the buyer.
Simply put, a short sale is when the seller has to get the lender(s) to approve a sale for less than the amount owed. The lender(s) agree to take the loss, although they may elect to pursue the difference from the seller at a later date. These take a considerable amount of time and are not for buyers who have to move quickly. The time frames appear to be getting shorter but we are still talking several months to reach agreement, if ever.
A home in foreclosure basically means that the seller is in default, has not made 1 or more payments and the lender(s) has issued a Notice of Default (N.O.D.). This process can take as little as a few weeks in states with non-judicial foreclosures to many months. The home can still be purchased, from the seller, during this period.
After a home has been foreclosed upon it becomes bank owned and is usually called an REO (Real Estate Owned by mortgage company). The negotiation process can take from a few days to a few weeks but is usually faster than a short sale and often has lender specific sets of terms and conditions. As mentioned above, the homes are usually sold as is. It is not unusual for the lender, in a multiple bid situation, to accept a lower, non-contingent cash offer with a short closing time than a higher priced offer that is contingent upon financing or appraisal and take longer to close.
There's a lot of information you can find by doing a forum search.
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