'Short Sale' an Option for Homeowners Facing Foreclosure

If you're falling behind and can't handle your mortgage payments some real estate agents say foreclosing on your home does not have to be your last option.

Many home owners have never heard of a "short sale."

Remax real estate agents Bob and Rita Driver say doing a short sale is a better option than foreclosure.

They say many agents don't do them because it can be difficult work, but they're trying to stress it's well worth it.

Rita Driver says, "So many people go straight to foreclosure, they never even put their house on the market, they never try to short sale or communicate with anyone because it's embarrassing, its a financial embarrassment."

She says a short sale is an opportunity to get out from under a home you owe more money on than what the market is dictating it may be worth.

The Drivers negotiate with mortgage companies to allow them to sell the home for less than what the owners owe, "It's just like you borrowed ten dollars from me and you only have eight to pay me back, I would accept the eight dollars."

They just did a three day training session to learn more about it.

Bob Driver says there's a lot of misconceptions about short sales, "A lot of folks don't understand short sales, some of them have been told well you have to be behind on your note, that's not necessarily true it depends on the lender and the situation."

To qualify for a short sale, you have to have a hardship like losing your job or a family death.

They say, yes you're losing your home, but your credit will be repaired after two years versus several years if you were to foreclose or claim bankruptcy.

The Drivers say it should be a red flag if someone tries to charge you an up front fee.

They say there are no up front fees to do this because the banks negotiate the commission.