Like so many cities in California, San Francisco foreclosed properties are numerous. You can go down almost any street and find at least one property that has been abandoned or taken back by the bank. While many of these homes could be sold in auctions or through traditional real estate market activities, a more proactive approach would be have been better for potential buyers and for the original owners.

The process is known as the ?short sell.? Basically, an investor or home buyer approaches someone who owns a home but who is in the pre-foreclosure process. The parties negotiate and strike a fair agreement. The investor will pay the remaining balance of the mortgage (or a reasonable percentage the bank will accept). In exchange, the seller turns the property over to the new investor. Of course, the entire agreement is done in writing with the guidance of real estate lawyers for the protection of both parties.

While the advantage is clear for the investor, the seller also benefits. The missed mortgage payments may remain on his or her credit record but, at least, he or she can actually avoid having a full foreclosure and home repossession affecting his or her credit score negatively. You should consider talking to experts about the process before taking this route.