Sage advice from Bloomberg when buying a distressed sale — bank owned (REO), short sale, foreclosure — real estate.

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As the video says, don’t be afraid of bringing in some hired guns. At the very least, work with a Realtor who, more than likely, knows more about the nuances of distressed property sales better than you, and also has the contacts — Title Companies, Real Estate Attorneys, Real Estate Appraisers, etc. — that will protect you from biting off more than you can chew.

I say this because I personally know a couple who, quite literally, bit off ~$88,000 more than they could chew by buying “their dream home” at a bargain basement price, only to find out their due diligence was lacking in the 2nd mortgage department.

With the huge increase in distressed properties — 72% of cities saw uptick in foreclosures in 2010 — no doubt industry professionals will adapt to changing market conditions and begin catering to this new environment to lure in willing buyers.