Thinking about a "Short-Sale" ?  Below is important information to consider as you venture into this difficult arena of Short-Sales, a similar document was recently distributed at a Hilton Head Area Realtor's continuing educational course and is a recommended acknowledgment document to be presented to any prospective buyer:

1.  The advertised price is of no or little indication as to the final price the bank or lien holder(s) will accept.  The actual settlement price will be decided after weeks or months of negotiations and is not final until the closing statement is approved by the bank/lien holders.

2.  The closing time (for those that actually receive final approval and go to closing), range from 90 to 180 days with some 9 to 12 months.

3.  Generally  there is no money for repairs, nor motivation for the seller to effect repairs, as the seller receives no funds from closing.  FHA and VA loans that require repairs prior to closing will withhold approval.

 4.  The seller will continue to review additional offers and present them to the Bank/lien-holder(s) during the process and the bank will withhold final acceptance as they in effect look for a better offer to limit their loss.  Should the bank approve a subsequent offer by another buyer, you, the original buyer, will simply receive notice that your contract was not "accepted" by the bank/lien holder (as per the "bank approval" contingency in your contract) and they will move forward with the better contract.  The funds invested in inspections, loan origination and appraisal may be lost.

 5.  Sellers participating in short sales may be in financial distress and as a result, the property may be encumbered with additional legal entanglements that may delay or impact the transfer of the property.