Short Sales and Foreclosures make up nearly 50% of closed transactions in real estate these days. That is a huge number that is not likely to decrease anytime soon. If anything, that number is much more likely to increase as we look at the whole economy and where it's headed.

With a short sale, the lender or "investor" agrees to accept less than what is owed on the property in exchange for having to avoid the expensive and lengthy foreclosure process. In a foreclosure, the lender will take back the property, through the foreclosure process, from a borrower and then try to sell it on the open market in order to recover a portion of their loan.

Short-sales may just be the hope this nation is looking for and needs. If you or someone you know needs to sell their home, a short sale may be the answer they are looking for. A few good reasons to consider a short sale are...

1. The homeowner's problem property is taken care of! No more harassing calls from the bank or collection agencies concerning the property.

2. The homeowner's credit is not damaged as severly, compared to a foreclosure on their credit report.

3. You will be eligible, under FHA guidelines, to buy another home in 2 years instead of 5 years.

4. No mortgage payments to make, unless you choose to do so.

For many homeowner's the chance to buy another home in two years & to be able to repair their credit faster are the real motivations to do a short sale. This also gives another family the chance to purchase the home, rather than the bank having to take it back, neglecting it & having the home become a blight to the neighbors.

As you can see short sales are a plus, especially in the tough times we are all facing. Here in Charlotte, NC our home values haven't dropped as much as others, but we have still felt the decline in values. There are many discounted properties on the market at this time that are going for over 30% less than they sold for two years ago. A large cause of this is the foreclosed homes flooding back onto the market as bank owned REO's.

Hopefully homeowner's will choose a short sale to not only benefit themselves, but to also benefit the community as a whole.