With today's soaring real estate prices, it is no wonder why many hard-working people find it nearly impossible to afford a home.

That is why many people are turning to discounted real estate to be able to become a homeowner.

This means doing things like buying foreclosures and short sales.

Although these types of properties can normally be purchased for deep discounts, there are often times a lot of red tape that comes along with buying them.

If a buyer wants to purchase a foreclosure or short sale, they are advised to do as much research as possible before buying anything.

A recent article by Elizabeth Weintraub of about.com, "Before you buy a short sale," discusses some things to be aware of when buying this type of troubled real estate.

A short sale is a home that is in the pre-foreclosure stage. It means that the homeowner has defaulted on their mortgage, but the lender is allowing them to sell it for less than the balance that is due.

A short sale is much better than a foreclosure because it does not ruin a homeowner's credit or have the bank physically take away the home.

"A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it."

"Be aware that the seller will need to be in default, to have stopped making mortgage payments, before a lender will consider a short sale. Also, the seller might have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.:"

Before you make an offer on a short sale, you should do your homework. This means first finding an agent who is experienced with short sales.

If you have a good agent on your side, who actually knows what they are doing, this whole process will be a lot easier and less intimidating.

"An agent with experience in short sales will help to expedite your transaction and protect your interests. You don't want to miss any important detail due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner."

After you have found someone experienced, you can start doing your own research about the property on the side.

"Do your research before making an offer to purchase. Your agent can find out who is in title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer."

All in all, short sales can be a great deal if you know what you are getting yourself into in advance and play your cards right.