Florida mortgage broker Ken Gandy recalls that even one year ago, not many real-estate professionals wanted to deal with short sales.

These transactions, which occur when the seller and buyer agree to a price lower than what the seller needs to pay off the mortgage, require a lot of time and patience.

"Some agents would say they'd never do short sales. But now if they say that, they're losing out on a third of the market in some areas," says Gandy, team leader of Keller Williams Realty, Marco Island, Fla.

As the real-estate industry continues to struggle with the effects of liberal lending, short sales continue to grow more common. And while prices of short-sale properties seem extremely attractive, the sales are not as easy to secure as conventional sales.

"It is impossible to predict when or if the short sale will be approved by the lender," says Dana Graham of Prudential California Realty, Palos Verdes.

Getting through a short sale nowadays takes guidance from a very knowledgeable real-estate professional and, ideally, a real-estate lawyer.

In addition, Graham adds, so much depends upon the knowledge of the listing agent and the relationship he or she has with the bank holding the mortgage on the company.

Financiers have been working to streamline the short-sale process. For instance, Fannie Mae launched a pilot program in some communities that aims to gather and prepare in advance the necessary research on a property and all clearances.

Gandy agrees that consumers should ensure that the real-estate professional with whom they are working is knowledgeable about short sales. He suggests asking directly how many short-sale transactions he or she has completed. Short sales require organized professionals with strong follow-through skills to expedite the transaction.

"Persistence is key in short sales," he adds.

Consumers considering a short sale must take the time to educate themselves about the process, says Elizabeth Weintraub, a broker-associate at Lyon Real Estate in Sacramento, Calif., and author of the upcoming book "The Short Sale Savior" (Archer-Ellison, 2009). Consumers also should recognize if a property they like is actually on short sale. Some hints include the use of such terms as "subject to bank approval," "give the bank time to respond," and "notice of default."

Weintraub says that because short sales are tricky, prospective buyers make some common mistakes; here are some to avoid:

Don't Assume You'll Pay the List Price

Some agents use below-market sale prices strictly as bait. Banks will then request appraisals to determine price. The lender may decide that it's more beneficial to pursue other avenues, such as foreclosure, or wait for a better offer.

Don't Assume You Have Enough Documentation

A lender must still study credit history, length of time on the job, debt ratios and more. The most successful short-sale buyers submit a loan prequalification letter - or better yet a loan pre-approval letter - with the offer.

Don't Assume You'll Close in a Few Weeks

It actually can take three to six months. Lenders may have a backlog of short sales and foreclosures and limited staff trained to handle these. The process could take longer if two loans are secured to the property.

Don't Assume That Inspections Are Not Required

Even though most short sale properties are sold "as is," you must still determine what problems may exist with pests, the roof, the sewers, the septic tanks, the chimney or fireplace inspections. As with other purchases, your offer should be contingent on the results of the inspection. While sellers are not obligated to fix problems, buyers must still know what they're getting into.

Don't Assume that the Contract Will Not Change

With new law passing on a regularly basis, the lender can reserve the right to change the terms.

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