Don't be scared off by these short sale properties as they may turn out to be a great deal for you.

But you need to know a few things before you decide IF you want to pursue a Eden Prairie Real Estate short sale purchase:

• A seller must disclose if the home either IS a short sale or likely will be, due to the market value.
• A Eden Prairie short sale MUST be approved by the lender. Even though a seller might accept your offer, it will be subject to approval by the lender
• Lender will (likely) send out an appraiser to evaluate the property in light of recent sales - they are looking for market value, too, and you cannot expect a short sale to be a fire sale (i.e., it may NOT be a great deal after all)
• Lender must receive hardship letter and other required documents from the seller in order to approve a short sale
• Lender will likely have a checklist of requirements and paperwork required for the short sale process
• Lender will likely request that the sale be "as is" and due to hardship will probably not approve any credit for repairs
• Be prepared for a short sale to take more time (total time may be 60 days +/-) - this is one of the biggest complaints from buyers

If you are making an offer:

• Make sure you make the offer contingent on the Eden Prairie short sale being approved by the lender and set a time frame for approval
• An addendum form is advised to outline the short sale contingency terms and conditions 
• A letter to the seller is also advised requesting written confirmation that the lender has received the hardship letter and other documents as part of the short sale application
• There is a good chance there will be more than 1 offer especially with a short sale in Eden Prairie
• It is still prudent (I would say it is ESSENTIAL) to conduct a home inspection even though the lender will probably require an "as is" sale - you still want to know what you are buying and what repairs need to be made
• It is possible the seller will not be able to do any repairs resulting from the inspection due to hardship of funds. This may vary from state to state AND lender to lender

Be sure to discuss issues and questions with your agent before proceeding, preferably someone who has some experience with short sales.

I would NOT recommend taking on a short sale purchase without representation by a qualified, knowledgeable licensed agent. There is too much at risk for you, the buyer. And remember, the listing agent represents the seller's interests, not those of the buyer.

I want to thank Jeff Dowler from San Diego for his insight.  Feel free to visit Jeff's Site if you are buying or Selling in San Diego