What normally goes on with a Short Sale? First of all, a short sale normally occurs when an owner owes a great deal to the lender and is in serious risk of foreclosure. If they get lender permission they can try to sell the home as quickly as possible for just the amount owed to the lender, or for an amount under the value of the home, so they can prevent a foreclosure.

This can be a great deal if you are able to buy a short sale home, as it is likely you are getting a home worth more then the price you are paying for it. However, there are some potential hassles. Always make sure that the price it is going for is at or under the current market price. Maybe the owner bought it during a high season and what he/she owes is now over the current home value, which is not a good deal for you.

Another important fact, is that when you put in an offer, the lender can deny it (you are not just dealing with the owner). The lender will also want to know that you are able to make good on your part of the deal, so make sure you are already pre approved, with evidence to back that up.

Your real estate agent also has to be skilled in the line of short sales (this is definitely not something a person can do on their own, so forget going there without a realtor). You are going to want to be able to have the home inspected beforehand, many times short sellers are strapped on cash so they have probably foregone home upkeep and are not likely going to fix up things before selling it to you. You don´t want to buy something that appears cheap but once you factor in repair, it comes to you at huge price. Another important idea is to make a time limit on your offer, don´t let them put you off so they can see if a better deal is around the corner.

An experienced attorney is also normally needed with these kinds of transactions due to the many conflicting aspects involved(lender/bank, owner, their representatives, etc).