Short Sales
A short sale is when the homeowner owe's more on the property than it will probably sell for.
Short sales are the first stop on a homeowners trip trying to avoid a possible foreclosure. If the price is right they will look very enticing.
I have not seen one yet with a pest report or home inspection.
The bank has to agree on the price and terms, and often they take their sweet time doing this. If you are a buyer and have an offer in, expect a counter... Someday. I have been noticing more and more of these on the market. I had an offer in on one here in Alameda recently. Everyone is looking for a bargain in this market and there is no free lunch. If your willing to deal with more risk you may just get lucky.