“When people lose homes to foreclosure, our communities, the housing market and our economy all suffer,” said Ron Phipps, 2009 NAR first vice president nominee. “Expanding the use of short sales would benefit consumers, lenders and the surrounding community.”

In a short sale, the seller’s mortgage lender agrees to accept a price that's less than the amount they owe on the property. The lender typically agrees to forgive the rest of the loan.  As a result, the seller doesn't have to go through foreclosure and the buyer gets the property at a discount. A short sale may damage the seller’s credit but probably not as much as a foreclosure would.  Buyers may get the property at a great discount, but they will need to go through some extra paperwork too.

For buyers looking to get in on a good deal - the time is now. We are seeing more foreclosures and banks willing to take short sales from the properties they financed in 2005.