If you are a homeowner who owes more on your home than its current market value, a short sale could help you avoid foreclosure. This is of course a very serious and complex problem. Do not despair, however. Like with most complex problems, there are solutions to this one as well. You just need to enlist the help of a licensed real estate professional and Certified Distressed Property Expert (CDPE). He or she will provide with the resources necessary to guide you through this often daunting and intimidating process.

To become a CDPE, one must successfully complete extensive additional training, focused specifically on the intricate details involved in foreclosure prevention and the short sale procedure. This training, along with vast real estate knowledge and experience, makes the CDPE the go-to person, regarding foreclosures and short sales.

Before examining the various details of a short sale, it’s important and perhaps reassuring to know that you are not alone. A peek at the OpenOffer.com® home page on Monday, Jan. 7, 2013, shows 286 properties in foreclosure and 373 involved in short sale proceedings. And that’s just in the San Diego area. A CDPE can identify all of your options and provide you with home foreclosure solutions in order to salvage your financial future.

Short Sale Processshort sale

While every situation is unique, here is a generalization of a typical short sale process:

1. Due to Financial Hardship, Monthly Income Shortfall, or Insolvency, a homeowner is unable to repay creditors the full amount owed on the property.

2. The creditors and homeowner negotiate an agreement whereby the creditors consent to accept less than what the homeowner owes on the property when it is “sold short” of its total value.

3. Upon closure of the sale of the home, creditors terminate the homeowner’s loans and liens against the property.

A short sale offers you a way to not only steer clear of the financial wasteland of foreclosure, but it can also alleviate some, if not all, of the supplementary fees to the creditor and borrower.

Uncertainties and Variables

A short sale does not necessarily get you off the hook, regarding all of your financial obligations on the home or property. You and your CDPE make sure those specific terms are agreed upon by your creditors beforehand.

Prior to approving a short sale, creditors typically require the borrower (you) to provide proof of a Financial Hardship, Monthly Income Shortfall or Insolvency that is preventing you from making your mortgage payments.

You should be aware that a short sale could have negative consequences on your credit report; however, it is usually a lot better than foreclosure.

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This is filed under Short Sales.

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