February 2012

In today's real estate market, short sales are very common. Simply put, a short sale is when a homeowner owes more on a property than the home's current market value. In today's market, many homes are worth less than their mortgage. When these homeowners fall behind on payments, or must sell the home because they are forced to move, the bank may agree to take a lesser amount than is actually owned, to prevent the home from going into foreclosure.

Short sales can be good for all the parties involved. However, as a buyer there are a few things you should know before you begin the short sale process.

1. Many approvals may be required. If the homeowner has a second mortgage on the home, the second lender must also approve the short…