As more homeowners find themselves underwater -- owing more on their mortgage than their home is currently worth -- and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage. Short sales can be a win win situation for all parties, because they enable home buyers to purchase properties in desirable neighborhoods and at favorable prices.

Theoretically, short sales should be a win-win for the bank and the homeowner. Although the bank does not receive the full amount owed on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary. Many homeowners also prefer short sales because it is less damaging to their credit scores than a foreclosure. However, real estate experts say that many of the banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property. In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financialhardship. If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.

Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained, as most owners may still live in the home.

Short sales often are more time intensive than traditional transactions and often require additional paperwork. Due to the large number of offers on short sales, many take as long as a few months to receive approval. If information or required forms are missing or incomplete, the bank may set the offer aside, which could delay the process and cause the property to go into foreclosure. To expedite the process, sellers should work closely with their REALTOR to provide all of the necessary paperwork.

Working with a REALTOR who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR will be able to serve as the mediator between the seller and the lender, and lead to a successful transaction.

It is important to remember that in a short sale, although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Home buyers should work closely with their REALTOR to submit realistic offers.

We are here to help and answer any questions you may have regarding Short Sales. Feel free to contact one of our REALTORS at any time.

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Feel free to spend some time on our site and utilize all the tools we have to offer. If your a seller, check out the Seller Reports and the Do's and Don'ts. If your Short Selling your home, check out the Short Sale vs. Foreclosure page to read up on how this will affect you now, and in the future.

For buyers, first and foremost, check out our financing section and allow us to pre-qualify you for a new home loan! Utilize our calculators (rent vs. own & mortgage payment calculator). Once we have narrowed down what you qualify for, check out our Featured Listings or spend some time surfing the MLS for homes that interest you in your desired areas.

Our Real Estate News page is always current and our Testimonials give you just a hint of how much we value and appreciate our clients.

We, at Granite Equity Group, are here to help and we thank you for your interest!

Current and future homeowners always ask me "When do you think the housing industry will hit rock bottom and should I wait to buy?" To be honest, I feel there is no correct answer to that question. My goal is not only to provide accurate information for our clients but also educate them along the way.

Even though the stock market may be jumping around and jittery, the housing market has been on the rise. According to the National Association of Realtors, pending home sales have increased for the 6th straight month and are up 12% from one year ago. Key factors that are pushing this positive activity is the affordability of home prices and low interest rates along with the $8,000 first time buyer federal tax credit.

Homes sales are on the rise for now, as long as pending sales keep increasing. The market has changed and gone back to a time when one is buying a "home" and not an investment. Buyers, when looking for a home you have to focus on location and payment. If those two things fit in your criteria then you are getting a good deal. If you foresee a potential home being your home, then now is a great time to buy.