There a re a growing number of distressed homeowners turning to Short Sales as the preferred method of avoiding foreclosures. There is some good information as well as an example of what one scenario might look like in this article by Albert Stimer, the managing broker for Town Realty in Florida.
In the article Stimer addresses a number of commonly asked questions about foreclosure and short sales, such as: Can a Short Sale help you avoid Foreclosure? Is the loss on a Short Sale less than Foreclosure? Promissory Notes in Short Sales, Tax Consequences in a Short Sale, Advise to homeowners in finding an experienced Short Sale Specialist Realtor.
Like Mr. Stimer, I have a passion for helping distressed homeowners avoid foreclosure. There is a lot of misinformation out there making it very confusing for homeowners to determine the best option to avoid foreclosure and who they can trust to help them across that minefield.
Most of the drawbacks which are discussed regarding short sales are also true of a foreclosure, but to a much worse degree in the event of foreclosure. As people become more educated about the facts surrounding foreclosures and short sale as an option to avoid foreclosure they are making the decision to short sale their home. Getting through the process as unscathed as possible should be the primary goal.