Buying a foreclosure home is not easy in the best of times. Closing a transaction on a foreclosed home takes a lot of time and patience, plus a good real estate agent. Still, buyers are purchasing foreclosures though paperwork issues have caused some banks to stop foreclosures for a time period. The instant equity(perceived/real extra value) in foreclosures continues to lure buyers to the market.
I personally have had only one deal fall off the table and that was in July 2009. Recently, the listing agent phoned to ask me if the buyers would still close on that same home though it was withdrawn from the sale 4 days before closing last year. The buyers already have purchased a foreclosure and are happily living in it now. That foreclosed house is still not back on the market.