Recently Federal Reserve Chairman Ben Bernanke recently spoke at the 2012 National Association of Homebuilders International Builders' Show and commented on the “housing recovery.”
"The economic recovery began more than two years ago, but it doesn't feel like much of a recovery for many Americans--certainly for those of you who depend on the housing sector for your living, as well as for the millions of others who have seen their home values plummet or lost their homes through foreclosure," he said.
It’s especially difficult for those homeowners who are contemplating a short sale. Many homeowners are unsure what to do and don’t even know what a short sale is. The truth is most homeowner’s are contemplating foreclosure before they explore the short sale possibility, and only start asking the question “what is a short sale?” after doing some research.
So since I just had a conversation with a military home seller who has orders to move, and owes more than his home is worth. So I started talking about short sales, and he stopped my short and asked “so, John, what is a short sale?”
Wikipedia quotes a short sale as:
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.[1] Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
What is a short sale?
A short sale occurs when a mortgage lender or lenders agree to accept less than the total amount of money they are owed on a piece of real estate in order to facilitate the sale of that property.
A short sale is generally accomplished when the owners of the property have fallen behind on their monthly mortgage payments and a foreclosure of the property is looming.
A short sale allows the property to be sold and the lender to recoup some of its losses. It also allows the homeowner to sell the property and avoid having a full foreclosure further ruin their credit and potentially severely impede their economic future for years to come.
What qualifies a property for a short sale?
In order to qualify for a short sale the owners of the property, in most cases, must be at least thirty 
(30) days behind on their mortgage payments and facing a potential foreclosure action.
Further, the owners generally must show a financial inability to get caught up with their mortgage payments as well as a further inability to then continue timely payments in the foreseeable future. A recent hardship, such as a loss of employment, may favorably play into short sale approval.
If you’re asking yourself “what is a short sale?” or you know someone who is feel free to call me 206-910-0200 or email johnrockshomes@gmail.com. I use the top short sale negotiators in WashingtonState, Seattle, and Tacomaand also handle King, Snohomish, Pierce, Thurston and KistapCounty. MBS Attorneys. If you’re interested in buying or selling a Washington State short sale.
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