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I do not think that we know enought about your financial background or the amount of money you will be coming into to make any sensible recommendation. Talk with a local realtor and a financial counselor, you can be more open with them. Stay away from short sales, if you want to explore foreclosed properties presently bank owned, you may do OK. Good luck!
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For Sale: $324,900
For Sale: $210,000
For Sale: $169,900