We've been doing quite a bit of work with sellers who owe more for their home than the property is currently worth. This often results in what is called a short sale. A short sale is when the lender is willing to accept less money for the property than the obligated borrower owes in order to avoid a foreclosure. I think it's important that agents realize that this is not a "kiss of death" situation. These situations can mean a great deal for their buyer clients and it can also help a seller avoid a financial disaster. Lenders are generally willing to work with agents who bring them bonafide offers. Most pay commissions. I personally have not had the unpleasant experience of dealing with a lender who would NOT pay my commission. To summarize, don't be afraid of the short sale.