Buying a short sale property

If you are shopping for a bargain, it may involve looking at properties that are "short sales". These are homes that are being sold for less than the mortgage amount so they are subject to bank approval. In terms of writing the offer, it is best to treat them like any other sale and keep home inspection dates and Purchase & Sales dates similiar to a regular purchase. It is frustrating that many Buyer Agents do not understand this. Yes, the buyer is risking money for an inspection on a property that may not get approved but the payoff is buying a property well below market value. The short sale approval process can take months, and to wait until bank approval for a buyer to conduct home, radon and sometimes well testing can set the entire process back. If something unforeseen comes up and it is major enough to renogotiate price (even in an as-is sale this can happen), the short sale must be resubmitted with a new HUD and sometimes updated paperwork which sets back the process another month or longer. Once the bank approves the short sale, the buyer has only 30 days to close in most cases. If the entire process of inspections and loan application is delayed, this deadline will be hard to meet.