I'm considering purchasing a home, and given todays market I've been viewing a lot of foreclosures and short sales. That being said, I have a question on short sale VS foreclosure in terms of legal liability from purchasing a home which I'm having trouble finding an answer to.
It seems like the legality of many foreclosures is up in the air due to this robo-signing scandal and in a worse case scenario if I were to purchase a foreclosure the previous owner could one day have me kicked out due to a claim that they were illegally foreclosed on.
That being said, is it legally safer to purchase a short sale as opposed to a foreclosure? My logic here is that it is since a short sale involves the original owner actively participating in the sale as opposed to a foreclosure where the owner is forced to move out and loses ownership of the property.