I compiled some interesting points from 2 articles in www.realestate.aol.com talking about short sales.
“Some home buyers seek out short sales in hopes of snagging a good deal. But such sales are not without complications. If you’re considering buying a home in a short sale, here’s what you need to know. The 411 on Short Sales.
…”When you see a house listed as a short sale, that means the homeowner is trying to sell his property for less than he owes on his mortgage. A bank may agree to this when the homeowner is underwater on his loan and might otherwise go into foreclosure.”
“The Risks of Buying a Short Sale. What are the risks for a buyer? The biggest one is the loss of time. Lenders control the transaction, and it’s entirely possible that a deal could take six months or more to close. It’s also not uncommon for a lender to reject a deal after sitting on the paperwork for many months.”
“Short sales can involve complex negotiation, with not just first lien holders but often second lien holders, and sometimes homeowner associations and even ex-spouses. Before a short sale can be finalized, everyone with a stake must agree to accept less than they’re owed.”
“You can get a property for 10 percent to 15 percent below market value,” says Kerry Thornhill, with Dallas-based Virginia Cook Realtors. “There is no reason for a buyer to steer clear of short sales — they can pick up fantastic deals.” As long as they have a strong stomach and a fair amount of patience.” Read full article in realestate.aol.com