Anne H. Cain

Occasionally you can get a very good deal on a short sale. You will usually be paying less than what the current owner of the house paid when they bought it. That does not mean you are paying less than what it is currently worth, however. The market determines the value of the home, and we have seen many market values decline recently.

When a homowner realizes they are going to lose all the equity in their home and their good credit as well they may get mad at themselves and take it out on the home. I have seen people take fixtures out of a home, thus hurting the home's value. Be careful to get an agent to help you so you know what can be expected.

Short sales may take a little longer to buy because in addition to the owner of the property, you must get agreement from the lender who is coming up "short" on the deal. The process is somewhat the same as the normal buying process. Be prepared for delays where paperwork is concerned, because the banks are swamped with requests, and they must figure out if it is necessary to take less than they are owed. Lenders must balance their books, or be able to explain why not. - Wed May 6 2009, 17:02