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As an agent, I routinely check the MLS for expired and withdrawn listings.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 the awful consequences.

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 houses below illustrate why houses DO NOT have to be foreclosed! From the dates and stats, just about anybody can deduce this house didn’t necessarily have to ‘bite the dust’.

Location: Oviedo

Square Feet: 2400

Last Mortgage Payment: May 2008

Foreclosure Case Active: October 2008

House First Offered for Sale: June 2008

Listing Period: 15 Months

Initial List Price: Over $300,000

Final List Price: $275,000

Balance Owed on Mortgages/Liens: $300,000

Estimated Market Value: Approximately $ 250,000

Final Judgment: August 2009

The real tragedy: This house was taken off the market in May, yet there was plenty of time to find a buyer in this popular community where sales are brisk!

Location: East Orlando 

Square Feet: 2500

Last Mortgage Payment: May 2008

Foreclosure Case Active: September 2008

House First Offered for Sale: October 2008

Listing Period: 10 Months

Initial List Price: Over $325,000

Final List Price: $325,000

Balance Owed on Mortgages/Liens: $170,000

Estimated Market Value: $200,000 - 250,000

Final Judgment: July 2009

The real tragedy: This house could have been sold as a regular sale with several thousand dollars left over!

Location: Central Orlando 

Square Feet: 4000

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