In the current troubled real estate market, just about everyone knows what a foreclosure is. An alternative to the dreaded bank takeover is the short sale.

A short sale is when the lender will accept an amount of money that is less than what is owed on a property. This is done buy selling the home quickly and the bank recouping what ever they can on the loan. It is not, however, an easy alternative to a foreclosure. A short sale is usually done under times of extreme duress where the homeowner cannot meet financial obligations due to sudden illness or some other catastrophic event. Some investors look for short sales as a way to buy a property at a reduced price. Unfortunately, short sales are becoming more common, even in areas where the economy is relatively strong, like Calgary, Alberta. But a good deal may also come with some headaches that may make the investment a time consuming and frustrating experience.

These are the five most common complaints from buyers on a short sale:

1. Banks wont accept a low offer on a short sale

Of course they wont. Banks are in business to make money. Just because someone makes a lowball offer on a property even if they are the only bidder doesnt mean the bank will accept it. Your bid must be realistic. A bank wont just give a property away. They have an obligation to their investors and shareholders to uphold best practice and get as close to a fair market value as possible.

2. This is taking too much time

Lenders are in no hurry to cash in on a short sale home. Be prepared for a longer than normal escrow due to the additional red tape of a short sale. This is no sense of urgency on the banks behalf when they are working on a deal that will see them lose money.

3. Last minute postponements and cancellations

This happens a lot when it comes to short sales. Considering the homeowner is usually not very pleased at having to sell their home, all sorts of things can happen between the time you make an offer and the final sale. The bank may change the offer, or the owner may suddenly come into some money that will help them make payments. It happens, so dont make your final moving plans until you get the green light on all fronts.

4. The bank wont provide answers

As mentioned previously, banks arent too happy about doing a short sale. It means they will be losing money so it will never be their priority. Quite often you may wait weeks or even months to hear back from them about your offer. The only thing you can do is continue your home search in the meantime and when they are ready to talk, they will call you.

5. The double standard

Lets face it: when you are borrowing money. you are the banks best friend and customer. However, when you are buying a short sale, you will have to play ball by the banks terms. Dont expect the royal treatment. If you can hang in there though, it may be worth it in the end.

Buying a short sale property can present challenges, so its best to be prepared. Watch the video to see how by using Sundaybell, you can find exactly the right agent to fit your needs.