What is a short sale? A short sale is when the seller is asking their lender(s) to agree to take less than the amount owed on the home as payment in full. It's considered a short sale when the sale price is insufficient to pay off the total mortgage(s) and costs of the sale.
Contrary to its name, a short sale home can be one of the most time consuming types of real estate transactions because the seller and lender must agree to the terms of modifications of the seller's mortgage obligations.
While there are rare cases of people buying a home for a huge discount, most short sale buyers pay the same price for a home as one that has already been foreclosed on. For this reason, buying a foreclosed property, or bank owned property, typically results in the same great deal as a short sale with less hassle and delays.
So where do you start? Your local realtor has access to thousands of short sale and foreclosed properties. You can also find foreclosed properties at www.homepath.com and www.homesteps.com. These are homes that have already been foreclosed on by Fannie MaE and Freddie Mac. Often these properties qualify for special incentives or financing with little down and no mortgage insurance. You can also search a variety of homes on our home search site www.gogreenloft.com.