If you take it like it sounds we should all be looking at Short Sales to find a great deal, right? NO! It is actually more of an oxymoron. I have heard of Short Sales that take nearly a year to close though usually you are looking at 3-6 months and that is after you wade through all the 'Red Tape' and back again!
Basically a Short Sale is when the seller's lender agrees to accept a payoff for less than what is owned on the property and they are not quick to agree to do this. So now you are thinking "It might be worth waiting for if I can get it for less than it's worth!" But this is not true either. The lender will hire an appraiser or broker to determine the 'market value' of the home. This is the amount they may consider accepting IF the seller qualifies.
Another factor that must be in place for a lender to accept a Short Sale is that the seller must be having a hardship - i.e. something has changed in the seller's lifestyle to prevent them from being ABLE to make their regular payments. Just like the buyer has to qualify to get the new loan on a home they are purchasing, the seller in a Short Sale must 'QUALIFY' to be able to sell his home for less than he owes.
I am not saying you should avoid Short Sales! If you find the house you want to make a home and it happens to be a Short Sale just know that you will need a lot of patience and preserverence and a KNOWLEDGABLE Real Estate professional to get the deal closed!
Happy House Hunting!
