There are many pros and cons to a short sale that many buyers and sellers need to understand properly the time line in itself.

The Pros:
• The Seller and Lender can avoid foreclosure on the property
• The Buyer can possibly buy the property below market value and have a chance at getting a good deal.
• The condition of the home is better than a foreclosure/bank owned property
• Property hasn’t suffered vandalism due to the homeowner still occupying the property

The Cons:
• The bank may not approve the short sale while taking their time to turn down the offer. It may be over a month when a response is heard and it’s not good.
• A bank can usually take 1-2 months to answer the buyer’s offer.
• A bank may bump one buyer out for a better offer
• The property is sold “as-is” with no repairs included.
• The Seller may end up owing federal income taxes on the short sale due to the amount forgiven by the lender
• Make sure the seller has experience with short sales. The complexities of this type of real estate transaction can screw things up for the seller.
• Buyers should keep looking at properties since they don’t know if the one they made an offer on, will be approved by the bank.
• The property must be in actual default for the lender to approve a short sale. Make sure the seller has gone into default.

More Information About Short Sales
Short Sale Process – Steps in a Short Sale Process
Wachovia Short Sale Package – California Short Sales