We've all certainly heard enough about "short sales" in the current market.  But sometimes the prices and terms being marketed are not realistic.  Sellers come up with a figure they think the bank will take.  It is not until an offer comes in that the seller goes to his lender and tries to negotiate the terms.  Even a counteroffer may be rejected by the bank, causing long delays and total frustration on the buyers part.  Since final terms are the decision of the "third party" there may never be an agreement reached, as this "institutional seller" could take a long time to decide the properties' acceptable price, not to mention determine with whom and where the transaction will be handled.  A buyer should not overlook the incredible bargains and reasonable prices being offered in the current market that are NOT short sales.  Many sellers have priced their homes properly at fair market value and still have left some room for negotiation.  There are great homes to be purchased, at great prices that can be handled in a normal, timely fashion.  Too many buyers become "short-sighted" when it comes to short sales!