Second, properties that are being sold through a short sale are often in need of repairs and/or deferred maintenence. There is a reason the house is being sold this way; because the seller couldn't make the payments. If they can't make the payments, they are probably not so concerned about getting the leaky roof fixed. Short sale buyers need to be able to accept the home in "as is" condition. Neither the seller nor their lender will make repairs. In addition, the buyer needs to be prepared with financing that will accomodate a home with defects. Most traditional mortgage financing will require repairs to fix any defects before closing. In short sales, this is often not possible. There are mortgage programs designed to combine repairs with permanent mortgage financing and your Houston mortgage lender can assist with details on those programs.

As a buyer, you need to be able to make quick decisions on short sales and be prepared to pay more costs than might be associated with a traditional home purchase. There are often closing costs that the seller's lender will not pay such as delinquent HOA dues, transfer fees, and home warranties. Furthermore, the mortgage company is also not likely to enter into long and protracted negotiations. Typically, when they come back with a counter offer, that is very close to their final number.Buyers should also be wary of the short sale terms set forth by the seller's mortgage lender. The terms can sometimes be onerous and often trump the terms in a standard real estate purchase and sale agreement, so make sure you read and understand every line of the short sale amendment.

Lastly, it is important to seek out the counsel of a real estate agent and lender who is familiar with working short sales. This can save you significant amounts of time and money.

Short sales can represent excellent opportunities to get a great deal on a house, but they are not without potential pitfalls.