Short Sales happen when the amount you owe on the loan is less than the amount that you can sell your house for. This is happening quite often in this real estate market and is often times preferable to foreclosure-check with your accountant or financial adviser. Find a REALTOR who specializes in Short Sales and Foreclosures. Be aware that you may still be responsible for the difference between what you owed and what was accepted by the bank. Most often you will just get a 1099 at the end of the year and pay income taxes on the difference. When you are looking to buy a short sale property there will be a posted list price-don’t pay that price. You need to approximate what the bank is owed and add approximate fees-attorney,closing and Realtor. Offer around 80% of that amount.
