“Do I really need a short sale?” That’s the first question you should ask yourself. If you’re not familiar with all the options, click on over to this page,”What are My Options?” and educate yourself. If none of the alternatives seem right for you, and you want to avoid foreclosure, read on! Keep in mind, I’m not in the real estate or mortgage business, I’m just an investor who got caught up in the same situation you’re in now. Here’s how I determined my positions:
Short sales are made for people who are in danger of falling behind on their mortgage payments. It is a negotiation between the lender and the owner to sell the house for less than it is currently worth. While this can be an emotional process, it is one that can save your checkbook.
With today’s housing market there are many people in debt that they can’t control. Whether it’s your fault or your lender’s fault, you might just not be able to handle your mortgage anymore.
February 18th, 2009 admin 
Have you considered being a little unorthodox and buying a home that is a short sale transaction? After the spate of much publicized foreclosures, many lenders have realized that a foreclosure is not necessarily the best way for them to offload a bad debt.
Foreclosures are costly, time consuming and represent an additional loss for the lender, because of the inclusion of both legal fees and court costs. Short sales transactions are becoming a more viable choice in situations involving financially stressed home owners.
If you have been looking at the real estate market, I’m sure you have noticed that many of the homes up for sale are advertised as short sale. Buying a home for under the amount that is owed on the real estate is called a “short sale.” In the current real estate market, there are many short sale options open to a potential home owner. Adjustable rate mortgages and the economic downturn have caused higher than normal foreclosure rates. If you are in the market to purchase a home, this is the ideal time to exploit the market to your own advantage. With some precise research and an open mind, you may find the home of your dreams at an unheard-of price.
The critical difference is that a pre-foreclosure, commonly called a short sale, is still owned by the private individual. It has not been through the foreclosure process yet. The bank hasn’t actually taken the property back from the owner and put the bank’s name on the title in public record.
A foreclosure is also commonly referred to as an REO, or “Real Estate Owned” by the bank. The banks typically will not take offers directly from the general public on foreclosure homes, because of liability and disclosure concerns. They prefer to have foreclosure homes sold through local real estate agents.