Short-Sales, Foreclosures are at Wal-Mart prices but with Wal-Mart customer services - Expect do some leg work when purchasing one of these.

Very few people actually know what a short sale in real estate is all about. Some try to explain it anyhow, which by no mean comes close to the original fact. Others simply budge way from the process of explaining it. The reality is there is plenty of misconception about short sale in public life.

In most cases, short sales are not liked by banks. Foreclosures are not liked by banks either. This is simply because; when a foreclosure occurs it damages the borrower's credit. Apart from this, the bank also face huge amount of loss. Moreover, foreclosures can also depreciate the values of other properties in the neighbourhood.

Home buyers look towards a short sale as an easy method to stop the process of foreclosure and also to minimise the loss of their credit. Normally, a short sale stays on a buyer's credit for a period of 2 years, whereas on the other hand, a foreclosure stays for about 5-7 years.

Short sales are not the preferred choice of lenders, since they are not able to gain as much as money when a real estate property is set to foreclosure. Most lenders estimate their foreclosure loss at an extreme of 50%. Suppose a lender sells a home by using short sale at around 70%-80% of its real price, then it is a 30%-40% improvement on a foreclosure.

A buyer doesn't have to consider about his income or the value of his/her home. Short sale can be applied by almost everyone. This is simply a process where you need to negotiate with various parties involved to find the best solution for a complicated situation. A short sale can benefit everyone involved, even if there is many mortgage linked to it.

It is often found that lenders become liberal to various modifications in loans which may include lowering the mortgage balance. In such cases, home buyers can keep their home by paying several easy monthly instalments. Suppose in modifications, the amount promised is not reduced, and then even a buyer can save his home with the help of successful modification.

It is unfortunate that not only homeowners, but also agents are not properly aware of the foreclosure options that are available in the market. It is often found that when a homeowner sees clear sign for foreclosure takes the decision of selling his property as the best available option and calls a real estate professional for help.

But the problem doesn't end for a homeowner just by calling a real estate agent and selling the house. It may happen that the property after sale doesn't fetch enough money that could be used to pay the entire amount of mortgages.

Homeowners should always keep in mind that there are many other options available before him/her to prevent foreclosure and the home. They can opt for mortgage modifications which are becoming popular day by day. They can also take the help of refinancing. But the best advice would be to have a back up plan always ready and seek suggestions from an expert about all the options to save a house from foreclosure.

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