Foreclosures account for nearly one-third of total home sales in Q2

According to a report by RealtyTrac, more than 30 percent of total home sales recorded between April and June were properties in some stage of foreclosure.

More than 265,000 distressed properties sold during the second quarter. This figure is down 5 percent from the first quarter but an increase of 7 percent from the same period a year earlier, the report indicates.

"With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate that will build them wealth in the long term and often cash flow as rental real estate in the short term," said RealtyTrac CEO James Saccacio.

Short sales are prime options for prospective homebuyers with limited capital to fund a down payment on a non-distressed home for sale. However, credit issues can still be an issue with these transactions. Consumers who want to fix errors on their credit reports may want to hire a credit lawyer.