The continuing foreclosure situation affects nearly all homeowners, either directly or indirectly. Until the situation is resolved, the large nationwide inventory of foreclosed homes undermines home values and disrupts entire families. One way that banks are working with homeowners facing foreclosure is to expedite the process by conducting “short sales.” This foreclosure alternative involves the lender agreeing to let the owner sell the home for less than the amount owed on a mortgage. That way, the lender avoids the costly and prolonged foreclosure process while still getting some of the money owed. Homeowners can stay in their homes until they are sold and rebuild their credit sooner. By helping to broker deals, real estate professionals help everyone win.
HINT: Because short sales typically sell at less of a discount than foreclosures, they help to stabilize neighborhood property values.