I’m sure a lot of you haven’t been able to turn on the TV these days without hearing something about “short sales.” Don’t worry too much if you think you’re the only person around who isn’t fully up to speed with exactly what a short sale is, a lot of people are in your shoes. Many think they know what a short sale is, but actually misunderstand some of the key things to know about short sales. A short sale is when the home is worth less than the existing mortgage and the homeowner usually has stopped making payments. Sometimes the owner is still making payments, but the value of the home has decreased substantially.

At this point, there are only two options left, a foreclosure or a short sale. The foreclosure will have to be carried on the bank’s books and on the credit report of the homeowner. A short sale could avoid this. The buyer will probably have to pick up most of the closing costs and the bank will not make many concessions, still a good price on a home can be open to the buyer. Short sales will take more time than the usual closing so you must be patient.

When you decide on your price for the home, you should also contact the lender. The lender must agree to the price of the short sale, no matter what the seller tells you. The bank may not even know that the home is up for sale. The bank may see that the owner is still paying the mortgage and is in good financial condition, thereby, refusing the escape valve of the short sale.

Hiring a good real estate agent to walk you through this process would be wise. Now, not all real estate agents have experience in short sales. Complex issue may arise that require a great agent, such as two liens against the home. If the bank believes it can recover more money through a foreclosure, it will not accept a short sale. In the Boise, ID area many short sale properties are available and there are a lot of expert real estate agents to assist you in becoming a homeowner.