It’s still possible to get a short-sale deal when purchasing a home

Q: A:Can you still get a good deal by buying a short-sale home? The savings might not be as good as they once were, especially in markets that are starting to turn around. However, you still can snag a home for thousands of dollars less than fair market value.

Back during the depths of the housing crisis, it wasn’t unusual for a buyer to win a home in short sale for 20 percent or more off fair market value.

Times have changed, but you can still get a great deal.

How much of a discount can you get? The most recent Realtors Confidence Index indicates short sales close for about 12 percent below market value, depending on their location and condition.

Start by estimating the fair market value of the home for yourself, using sales of comparable properties near the home in the past few months as a guide.

Take the condition of the home into account and reduce your estimate if the home you’re buying needs repairs. How long will I have to wait to learn

Q:whether my offer has been accepted?

It almost always takes longer to close this type of transaction, because it takes so long for lenders to review and accept your proposal. If the property has a second mortgage, the second bank has to agree to

A:the sale, too. The first mortgage holder may have to pay the second mortgage holder something to entice them to sign, and getting them to come to an agreement takes more time. Expect to wait at least a couple months.

Bankrate.com