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With the real estate crisis home prices are down despite the low prices many homeowners are stucked with the possibility of foreclosure and many are now opting for short sales.
Short sales seem to be the only alternative to avoid foreclosure especially for those who paid top of market prices before the real estate crisis.
A short sale is when a borrower sells a home for less than the amount owed, with the lender forgiving the difference. The homeowner avoids foreclosure and the lender avoids getting stuck with the property. Remax has recently published that short sales is responsible for at least 80% of their business.
One in every 5 homes in the country is for short sales and with the current foreclosure crisis selling short is becoming more and more often.
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