1) Loan Approval- lenders are feeling the backlash of the housing crisis and they are taking it out on new buyers. Most of my clients are shocked at how much detail underwriters (gatekeepers of money) are reviewing their application, the items they are requesting and how long the whole process is taking. My advice- start early, be prepared for a battle and make sure your credit and income are cleaned up!

3) Homes selling over asking price: It is important to note that bank owned homes are often priced BELOW what the bank expects to sell them for in an effort to entice lots of curious buyers in a short period of time and start a bidding war. Many foreclosed homes will actually sell higher than their initially listed price. Same is true for short sales- agents list below market to get an offer in front of the bank and then the bank comes back with higher terms.

4) Homes sold "as is"- no repairs or credits!: In a traditional sale, the buyer usually has a chance to do an inspection and then go to the seller with a request for repairs of items they didn't know were broken or not working correctly. However in this distressed dominated market, most bank owned homes are sold "as is". You still have a right to do your inspection but not an opportunity to ask for repairs or credits- the bank will say take a hike! With short sales, the seller can't contribute funds to the process and usually aren't willing to repair anything on a home they are losing.

5) Short Sale listings that stop with showings: It is pretty common that agents/sellers will stop showing a property once they accept an offer on a short sale listing. It can be 2-3+ months for a bank to respond to that offer, so there really isn't much need to continue to disturb the owner with showing until you know if the bank will cooperate with a short sale and what their terms will be. It is frustrating for buyers when they see a listing with a great price (see #3 above, that price might not be realistic) and I can't get them in to see the home!