03-07-2009, 10:25 AM
If the home is in decent condition, there is not much down side. The worst case is the seller's lender does not accept the offer. The difficult part of a short sale is getting the lender to go along with it. If the loan has been sold, the servicing company or bank must obtain investor approval. If the seller had PMI (Private Mortgage Insurance) they also would have a say in the deal. If the loan were an FHA or VA type loan, those agencies must sign off. Some of these deals may also have a second mortgage in place. These situations are more difficult as the second lien holder is likely not to receive anything and not want to go along with the short sale. While lenders are more likely to accept a short sale than several months ago, the process can take awhile. All of this process takes time. Be patient, and you could land yourself a nice deal.