What is process for buying a short sale?

Locate pre-foreclosures in your area. You can use an online database, search for an experienced real-estate agent as a buyer's agent. First, try to determine how much is owed on the house in relation to its approximate value. If it seems high, it's a good candidate because it indicates the seller might have trouble selling it for enough to satisfy the loan. Pass on those in which the owner has a lot of equity in the home - the lender likely will prefer to foreclose and resell closer to the market price.

View the property condition how much you it is going to repair or renovate. If a lot has to be done for the property then don't consider it. Leave the property.

What is the worth of the property? What is the profit margin in it? If you're an investor or even a homeowner planning to live in the home a short time, you'll want to profit from the deal.

Ask the seller or his agent what liens are on the property, and which lender is the primary lien holder.

It is difficult; you have to know how you're going to pay for the property. Since it already has a lot of your information in the short-sale paperwork, it may be able to expedite the loan application process. It's important to understand that in a short sale, you have to be able to move quickly. Once an agreement is worked out, it is common for the lender to require closing in as few as 20 days.