Foreclosures don’t have to happen. When homeowners face difficult financial times, Short Sales are often the best way out.

As an agent, I routinely check the MLS for expired and withdrawn listings. Often I find houses just like the one below ... houses headed for foreclosure because the homeowner didn’t understand there was a way to avoid foreclosure.

While trying to sell a home as a Short Sale won’t always be successful, the odds are on the side of the homeowners. By finding a ready, willing, and able buyer, they can often stop foreclosure proceedings in their tracks and walk away with a clean ‘financial’ bill of health. In some cases, they might have to sign a promissory note for a percentage of their total obligation. The important thing, in the end, is that they can salvage the ruinous credit rating they would have incurred with a foreclosure. Better yet, in as little as two years — or even less — they’ll be able to purchase a new home with a conventional mortgage.

The house below is the first of many I plan to illustrate. From the dates and stats, just about anybody can deduce this house didn’t necessarily have to ‘bite the dust’.

Location: Central Orlando 

Square Feet: 4000

Built: 2006

Last Mortgage Payment: June 2008

Foreclosure Case Active: November 2008

House First Offered for Sale: February 2008, but NOT as a Short Sale

Listing Period: 6 Months

Initial List Price: Over $1,000,000

Final List Price: $850,000

Estimated Market Value: $525,000 - $650,000