Real Estate - Can we talk short-sales?

[BigCat]

I bought on a short sale. We got a great deal on a home that was in good shape - just in need of updating. We made a low ball offer in March and did not find out whether it was accepted until June. We closed in July. I was told that the timeline was pretty standard. There was actually no back and forth with the bank. After we executed the purchase agreement with the owners, it went to the bank for approval and we just waited. We knew they were having a half-assed appraisal performed on the home (I forget the correct term for it now) to determine whether our offer was acceptable. Apparently it was. The closing went off without a hitch and we've been very happy. I think we only put up $1000 in earnest money.

On the other hand, a friend of mine got jerked around a lot with a short sale that eventually fell through. I think how smoothly the process operates depends a lot on the lender and whether there are other mortgages on the home that will require the cooperation of more than one lender. Logic would dictate that the banks are losing money on these properties every day they sit on an offer, but they seem impervious to that logic. Hopefully your realtor is familiar with the process and knows enough about the lender that has to approve the sale to get it through. Good luck if you make an offer.

Edit - I posted before I saw your most recent post. If the rental market is like it is here, you may easily convince your landlord to go month to month. I was in the same situation and mine agreed to do it just to keep a tenant she knew would pay in the place. Just a thought.