Short Sale...the term makes many lenders and real estate professionals cringe.  However, there are many success stories that started off with that term.

A short sale is, in short, a way out of foreclosure. When a lender will accept less money for your home than what you owe, it is considered a short sale.  An example would be:  The unpaid balance of a mortgage is $150,000 the home/property sells for $100,000, with a short sale the lender accepts the $100,000 as payment in full.  Seems simple enough, right?  Well, it can be.  Following a few simple tips can make a short sale seem like a walk in the park!

Financing a short sale is a little different than financing a "typical" sale.  One tip would be to purchase "below your means".  Don't use your pre-approved loan to the max, make room for some flexibility. Short sales can take a bit of time to for approval, during this time interest rates fluctuate.  If the rates jump up, you could find that you are no longer qualified to purchase the home that you are looking at.

Another tip when financing a short sale is to be certain that the lender can guarantee a 30-day closing.  Many banks want to close within 30 days of approval, however if your loan requires a longer approval period, you may not be able to close in time and your approval will expire.  

Also, you should ask your real estate professional to inspect the home and discuss any issues in advance as many lenders have loan conditions.  Some loans require pest reports and repairs before agreeing to finance.

Taking a little time ahead of time can really make your short sale experience enjoyable and timely.