SHORT SALES

A short sale or pre-foreclosure takes place when the current home owner can no longer make the payments on the home. They then go to their lender and negotiate to sell the home for less than the balance owed on the current mortgage. Once a contract is accepted, the lender usually forgives the remaining balance to the original owner.

The biggest drawback in buying a short sale home is that all contract offers must be approved by the bank. It can take up to 90 days just to get an answer from the bank on your offer,so it can be a nerve-racking experience and is not  for someone who is in a time crunch to move. However, if you have the time to be patient this type of home can be a great buy.