I then explained that a couple weeks ago, we were looking at a foreclosure in a really nice neighborhood here in town.

@Joe Koppel -  we buy foreclosures and use the number from the tax assessors website.  

I am under contract on a foreclosure and scheduled to close in 3 days.

Is that because as a seller, one is safeguarding them self against complications, such as foreclosures, and a low downpayment paying buyer (like me using an FHA) appears as a risky repayer? 

its hard finding them here in north nj should i look for short sales or foreclosure?

Hi Tyler,I will explain the HUD foreclosure process for you if you answer the following questions.In your original comment you stated the HUD home was owner occupied is that correct?

Plan your steps post closing ahead of time in terms of: foreclosure, loan servicer, recording your note assignment.

I understand foreclosure is expensive and takes a great deal of time, but if it's budgeted in, there's been solid due diligence, and #'s work out even factoring in a potential foreclosure, what kind of "landmines" are out there? 

Got to try some out to see what works.Bank-owned properties and pre-foreclosures are a little more challenging unless you are also a cash buyer and can immediately transfer.  

If you are planning on buying city of Milwaukee REO or tax foreclosure properties, I would agree with the other responses, be prepared for a big SOW and the process can be demanding.