Be VERY careful with short sales. My DH and I looked at a house that was subject to short sale. The realtor told us that it had been under contract for 6 months with another family, they ended up backing out (and it cost them $4,000). I looked into it further, and found that when you buy on a short sale, you are subject to the bank approving the terms of the agreement, and you are bound by the contract you enter into until the bank accepts or rejects your offer. Sometimes the process can take months. IMO, it's better to wait until a house you are interested in comes up for auction.
at 4:16 PM on Jun. 29, 2010