The downsides to short sales include the following: You usually have no idea what amount the bank will consider, so you have to submit an offer blind, without knowing whether you’re even in the ballpark.
Because lenders often try to reduce their commissions, buyers’ agents are wary and often reluctant to give a project a quality effort. Listing agents are wary because they can’t list a guaranteed sale price or buyer agent commission for the property.
Some banks don’t respond quickly, and it’s not uncommon for them to sit on offers for a week or two, hoping for a better one to come in. In spite of these drawbacks you can sometimes get a great deal with a short sale, but you should plan on spending extra time and have a great deal of patience.
Another wrinkle to factor in is that sometimes sellers are cooperative because they want to save their credit, while at other times they give up partway through and the sale fizzles because the bank can’t deal with you as long as the sellers own the property. The bank doesn’t become owner until the property goes through foreclosure.
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