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Short sales are now a hefty part of the real estate market. Short sales are the process of selling a home for less than the stated mortgage balance. The process unfortunately has allowed a tremendous amount of fraud to occur and with more purchases going through the short sale route, this is simply another concern potential buyers must be aware of.

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While completing a short sale can be a good option for homeowners who want to avoid a foreclosure, short sales come with the following potential disadvantages and risks. You Might Have to Pay a Deficiency Judgment. In a short sale, the sale price is less than the amount that the borrower owes on the mortgage.

On top of that, not every short sale listing agent knows how to do a short sale. Open House Stories: Short Sales, Timeline of a House Flop.. Flip or Flop Today, MyMoneyBlog.com is a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission.

The seller must first obtain a sales contract in order to be considered for the program. To protect the seller’s interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.

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