Inflation, unemployment, illness, and countless other factors can make it difficult for homeowners to make ends meet. Consequently, some owners end up selling their homes for less than the amount that is still due on their mortgage. This is referred to as a "short sale."

For homebuyers, a short sale can present a valuable opportunity. However, buying property through a short sale is not without risk.

Possible Advantages and Disadvantages of Buying a Home Through a Short Sale

The main reason that someone would consider buying a short-sale home is that it will likely be available for much less than the home's appraised value. This means that the buyer could get a great deal. Many investors purchase a home or parcel of land and "flip it" for profit. If done carefully, buying a short-sale home can be a lucrative investment.