A newspaper in Lee County, Florida recently reported that the number of property foreclosures for the month of July 2007 had topped out at over 1000. Adding to that dismal statistic is the fact that homes sold there during the same time period barely topped 500. This is just one average county of the almost 4000 counties in the United States, yet it is a sad picture that is repeating itself across the country.



For the many homeowners looking for help to stop foreclosure there are many options available. One such option is the "short sale". This literally means selling a home for less then the loan balance with the lenders agreement in advance to accept the lesser amount. Short sales offer some positives as they tend to cause less damage to credit scores.

With the ever-increasing number of homes going into foreclosure some lenders are more then willing to enter into short sale negotiations. The fortunate homeowner already having an investor in the wings ready to buy the home will find they have greatly improved their chances of getting the lender to agree to new terms.

Look at it from the lenders perspective. They can take a loss or even a slight gain in some cases by agreeing to the short sale, or take the home back and try to sell it in an already stagnant real estate market. Liken it to the old adage of "A bird in the hand beats two in the bush". Lenders are in the cash flow business so an investor standing by to purchase the house may prove to tempting a proposal for them to pass up.

Locating The Right Investor

Obviously before contacting the lender the homeowner should locate a qualified investor to look at your situation. The question is where do you find investors willing to do a short sale? You may see investors who advertise in your local newspaper. Start contacting realtors. Most realtors have a list of investors they have worked with on real estate deals and possibly have done short sales before. Have the realtor contact the investor on your behalf or call the investors directly and ask if they would be interested in working with you.

Do not be discouraged if at first you cannot find an investor locally willing to do a short sale deal. Expand your search. Look in neighboring counties for possibilities. If you still find it rough going look in other large cities in your state. It's a numbers game and the more contacts you make the greater the chance of finding help. Once you have the money to back the deal the greater your chances of selling the home to prevent foreclosure.

Conclusion

Real estate foreclosures continue to trend upwards with no foreseeable relief on the horizon. Though short sales can be one answer to homeowners looking to avoid foreclosure, as they cause less damage to the credit score as a foreclosure, costing less money as well, they should still be treated as a final option before foreclosure. It is always in the best interest of the homeowner and the lender to work out a solution between them.