buying a short sale, mortgage short sale Buying a short sale home is not for most people who want or need a home right away. A mortgage short sale is one in which the home depreciated after the present owners bought and financed it, and it the mortgage is higher than the home's value. The current owner works with the bank to sell it as a short sale, once the bank approves the short sale. It's a win-win situation for everyone involved. The current owners don't get the foreclosure hit on their credit report, the bank doesn't have to carry the home as real estate owned, and the new buyer gets a home for appraised value, and often, even less.

The only downside is that when buying a short sale, there is more time involved. Because the transaction is going through a bank, there are more forms involved, and the banks are swamped with mortgage short sale homes for sale, and there may be delays because they are not staffed properly to handle the volume. But if you are a buyer who wants a great deal, the short sale home is the way to go.