WHAT'S A SHORT SALE?

With foreclosures at an all time high, is there anything a home owner can do to try and save there credit? One solution is called a short sale.



Short sales are getting much attention lately as a tool to help to ease the pressure that the homeowner is facing. Basically, the definition of a short sale is to work with the lender to discount the note in order for quick sale of the home.



Most folks who get to the foreclosure point, are usually mortgaged to the max or over mortgaged. Lenders have been very lenient in the past few years and allowed owners to borrow more than they should.



Situations change and sometimes the home owner just can't keep up with the payments. This is where an experienced investor or Realtor with the knowledge of short sales can lend a hand.



They work with the home owner to "build a case" and a package to send to the lender, showing them why it would be in their best interest to work with the owner now and receive a fair portion of what is owed rather than spend a lot of time and money in the foreclosure process.



It becomes a win, win, win situation for all involved and the home owner can get on with their lives. Not all lenders will discount their notes because they typically are located out of town and don't know the local market. Others just have tunnel vision and haven't figured out that it would be best to take what they can get now rather to get even less in the future.



With the state of the housing market and the current lending situation, short sales are only going to increase and will continue to be one of the best solutions for the pre-foreclosure market.