Yes, you can! You still have to do your research and estimate the current market value of the home. This is one of the areas where a knowledgeable real estate agent's level of experience like mine really pays off.

Commissions are generally subtracted from the seller's funds and paid out of escrow to the Realtors. In a short sale, the seller has no funds in escrow which means the commissions end up being subtracted from the monies that would go to the lender. So, the lender ultimately is the one paying the entire sales commission.

Probably not, but it depends on the lender and where they are in the process and how flexible they are willing to be.

As in all real estate transactions, a Buyer's agent working with your best interests at heart will help your chances of a acceptance of your offer. Working directly with the seller’s agent may sound simplier, but can be a conflict of interest. The Seller’s agent needs to negotiate directly with the bank on behalf of the seller. If they are representing both sides of the deal, seller and buyer, they are required by law to function as a neutral party, which means they can not advise either party.

No. Only individuals authorized by the seller can negotiate with the lender on their behalf. In most cases this is a qualified sellers agent and their representatives. Banks will not discuss a property with you unless your name is on an "authorization" by the seller.

A short sale can take a week to several months depending on so many factors:

• the strength of you as the buyer and your lender
• the lender holding the loan
• have there been previous "low ball" offers
• the number of liens on the property as well as the servicers on those liens
• the details of the short sale offer

The key to a successful short sale is to be patient, deligent and have a Realtor that understands the process.

Like any contract on a property, there are options that permit the buyer to exit the agreement.

• If the bank has not accepted the offer, you can exit the agreement by submitting a notice of cancellation
• If the bank has approved the short sale, you have the opportunity to inspect the property and exit the agreement by the inspection notice date based on the results of the inspection

Remember, when an owner short sells their home it's because they are suffering a financial hardship. This means there is no money for repairs and as a buyer you can't reasonably expect the seller to do much in the way of repairs. It is possible to convince the lender to make reasonable repairs relating to safety, but this type of cooperation is dependent on the expense involved, the nature of the repair and the purchase price being paid.

Liens can complicate matters because the owner may not have the financial capability of removing them. Depending on a number of factors, including the real estate market and the purchase price, the lender usually clears the liens. Or, sometimes the lien holders themselves might be convinced to reduce their liens. A short sale in this circumstance may take longer.

An experienced Realtor can quickly tell you that "short sale" homes are probably intentionally priced low to to attract offers. A lender agreeing to sell a property via short-sale will base the sale price and terms on a current appraisal.

By Elizabeth Weintraub, About.com Guide

1. Sellers Paid Too Much - If a home sold for $500,000 a few years ago and is now for sale at $400,000, that doesn't mean the buyer is picking up $100,000 of equity for free. It means the seller paid too much in a rising market and now the market has fallen. It means the seller has no equity.
2. Sellers Borrowed Too Much - Banks that were eager to lend money in appreciating markets sometimes allowed borrowers to over-mortgage the home, meaning the borrower's loan balance exceeded the value of the property. Appraisals are subjective, and not all appraisers will place the same value on a home. Although against the law, some appraisers are pressured by banks to appraise at the amount the home owner wants to borrow.
3. Stringent Qualifications - Inexperienced or unethical real estate agents might push a seller into considering a short sale when the seller does not qualify for a short sale. Sellers must prove a hardship and submit evidence of the hardship to the lender for approval. Some agents list homes as short sales without ever talking to the lenders or pre-qualifying the sellers.
4. Homes Sell at Market Value - Lenders aren't naive or unaware of the value of a home. Lenders will insist on a comparative market analysis, known as a CMA, or broker price opinion, known as a BPO. If a lender believes a better price can be obtained by taking the property back in foreclosure over a short-sale offer, the lender may hold out for a higher price. That price will be close to market value. Lenders accept short sales when the home is worth the short-sale price, which means market value.
5. Homes Sell "As Is" - If a mortgage company agrees to a short sale, it is most likely also paying the closing costs in the transaction. Lenders ask buyers to purchase the home in its present condition. Lenders typically will refuse to pay for:
   • Suggested repairs disclosed on a home inspection
   • Pest inspections or work necessary to issue a clear pest report
   • Roof certifications or roof repairs
   • Home protection plans for the buyer
   • Deferred maintenance
6. Length of Time to Close - Depending on when the Notice of Default was filed, the lender's back-log of foreclosures and how much paperwork the seller has already submitted, it could take anywhere from two weeks to two months to get a response on a purchase offer from a lender. In addition, if two lenders are involved because there are two loans secured to the property, it could take longer to satisfy the demands of the second lender.
7. Lenders Can Change Conditions - Some lenders reserve the right to renegotiate the terms of the short sale at the last minute. If the market changes, new laws pass or new information crosses the lender's desk, the lender can attempt to change the terms of the contract. Lenders generally have lawyers at their disposal, and ordinary buyers do not.
8. Lenders Discount Commission - Generally, only lenders who have sold loans to Fannie Mae or Freddie Mac are paying traditional real estate commissions to real estate agents. The rest may want a discount. Moreover, agents end up doing two to three times the work of a conventional transaction and don't appreciate getting paid less to do more work. If you have agreed to pay your agent a certain percentage under a buyer broker agreement, you could be liable for the difference between what the lender will pay and what your contract stipulates, if your agent refuses to waive the difference.
9. Higher Buyer Closing Costs - Because lenders rarely will pay for any extras, like a seller would be willing to do, if you want any of those extras, you will pay for them yourself. Sometimes lenders will refuse to pay for standard seller closing costs such as transfer taxes, too. If you want specific inspections, you will probably pay for them out-of-pocket.
10. Lose Control of Transaction - If you need to close escrow by a specific date, lots of luck with that. A short sale home closing process takes an indefinite amount of time. The seller's lender calls the shots, not the buyer nor the buyer's lender. If you are trying to close escrow concurrently with the sale of your home, it might not happen.
11. Little Seller Motivation - When the seller discovers that the short sale effect on credit is close to that of a foreclosure, there is little incentive for a seller to cooperate with a short sale. Although sellers may qualify to buy another home in 2 years after a short sale versus 5 (with restrictions) on a foreclosure, some have no intention of ever buying another home again.