Many people in western Kentucky probably aren't familar with something called a "short sale". It's not something you'd really want to be familar with. I receive at least one spam email regarding short sales every day. They are a big source of income for real estate agents in these states with high foreclosure rates.

A short sale occurs when you are facing foreclosure and you have a buyer offering an amount less than what you owe the lender. This may be because the real estate market has changed and the value of your home has decreased. You and an agent approach your lender offering this lower amount hoping they will accept the lower offer and avoid foreclosure proceedings. The negotiation with your lender is typically a lengthy process.

A short sale isn't a "get out of debt free card." Although you may be able to avoid foreclosure the lender doesn't let you off scott free. The short sale process typically means you avoid foreclosure and are left with the remaining balance to pay off, possibly fees.

The timing of the short sale is critical. The foreclosure process typically takes 3 to 6 months from start to finish. Finding a buyer can take a big portion of that time not leaving much time for lender negotiation.

If you find yourself in this situation you can also consider having someone assume your loan. Meaning, they take over the payments. This can help avoid foreclosure as well and may be much simpler if you find a willing buyer. This option is typically mentioned in your mortgage contract.

If you find yourself in this unfortunate situation call me and we'll discuss what options you have. A call, or many calls, to your lender may be required.