Regardless of whether you're looking to purchase an inexpensive very first house or even make money from the actual housing market, you will probably look at each short sale as well as house foreclosures.

Here is the short outline of short sale advantages:

Short sales usualy happen when the market cycle brings prices down so much, that the house itself is worth less money then loan principal and down payment. When people are trying to sell these houses, the seller will basically own the lender more then the sale can produce. As an investor, we can buy a $100 000  house on short sale for $60 000, having owned let say $10,000 that was short to the lender. There is another benefit - houses  are usualy better kept then those that you can find on an auction. For the investment sake there is less hassles with financing and if the bank already filled all nessesary paperwork and followed all regulations, and if the borrowers know that they are leaving as soon as the property is sold - there is not much difference between short sales or regular sales.

Disadventages? Well, there are some... the bank has final word: to approve all purchases.That's why timing for "short sale" may not be that short. Short Sale bank movement is much slover than traditional bank movement. Thats why we collect some tips to help you better understand the "short sale universe":

• Search for short sale properties with only one mortgage.Well, usually two lenders work together much slower.
• Ask the selling agent for recent sales of comparable properties in the area. That helps you to build resonable negotiation strategy and avoid multiple counter-offers.
• Find out whether the property is an approved short sale.That's for your own benefits.
• Offer a reasonable price when approaching to buy a short sale property.You are dealing with a lender. If you lowball the asking price, the lender might just ignore your offer entirely.
• Look at multiple properties while you wait. Feel free to look at other properties and make offers on them if your state laws allow it. Our agent will help you understand the local laws and contingencies when making multiple offers.
• Hire a home inspector to look at the property.Since short sale properties are generally sold as-is, you still need to collect all disclosure and as it is time to sit to the closing table, you better know what repairs the property would need after you take ownership.
• Finalize your loan paperwork immediately after escrow opens on the property. It is imperative that short sales have to be closed on time this is to avoid any problems to get your loan finalized the week before the closing date. If there is a problem with the timing, and even if you immediately put in a request for an extension with the homeowner’s lender, there is no gaurantee that it will be granted.

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