The advantage of a short sale for the lender is to get rid of the property before it goes into foreclosure and avoid the hassle and expense of trying to sell a foreclosure.

The benefit for the biuyer, of course, is that he is getting a property at less than market value because he is willing to pay cash or refinance right away.

Another advantage for the buyer is that a house in pre-foreclosure has not been sitting empty and getting in bad repair as a lot of the foreclosed houses do. As this house is being lived in now, odds are that it is in pretty good shape, at least in a livable condition. So a lot of money can be saved on repairs.

An buyer needs to move very fast when he finds one of these deals because once the foreclosure proceedings have begun he will not be able to do a short sale.

The homeowner is being given the chance to sell the property without it going into foreclosure, but with no cash benefit from the deal.

The bank wants the transaction to be fast because he wants to be sure it will not be slowing down the process.

The buyer / investor will get the homeowner to sign a purchase contract and an Authorization To Release Information form so that he can then go to the lender and negotiate a short sale.

The loss mitigation department of the lenders' will then handle the short sale.

A short sale will be good for everyone involved. The homeowner will have a sale rather than a foreclosure. The bank will save the expenses of foreclosing. And the buyer will have made a fast deal which will allow him to pay a lower price for the property.

With so many people going into foreclosure or are in pre-foreclosure, the short sale opportunities are rising.

Sometimes when you have successfully completed a short sale, the lender will be happy to do more short sales with you. He may even contact you when such an opportunity arises again.

There are many opportunities for real estate buyers and you need to explore all avenues. Short sales are fast and profitable and you need to start looking for them. Talk to some bankers and mortgage companies and let them know you may be willing to do some short sales.

A short sale is not for the no money down, bad credit okay buyer. You need to either qualify for a new mortgage or pay cash for the property. But the rewards can be sweet with a successful short sale.