buying a short sale, definition of a short saleIf you would like to start investing in the real estate market, buying a short sale home could be a way for you to make some significant money down the road. This real estate market will not continue to slide as it has, so if you been looking for ways to invest, buying a short sale while prices are still low could be a wise investment. When the housing market regains its health, you could be sitting on some good investments. The definition of a short sale implies that the buyer of the home acquires it for less than the seller owes on it. The lending institution has to agree to the short sale in the first place, and they are usually quite happy to do it because it keeps the house from going into foreclosure. While the bank will undoubtedly lose money by allowing the short sale, they will do it because it will cost them less than managing a foreclosure. When they have too many homes as REOs on their books, the bank pays dearly for those assets, both in dollars lost, and in their ability to leverage other investments. Look into buying a short sale before the market starts to improve and build your investment portfolio.