A short sale is the best resolution for a Seller who is having a hard time paying their mortgage. The Seller lists the property for less then the amount they owe on the property and once they get an offer, they negotiate with the bank to accept the offer and release them free and clear of any outstanding mortgage debt against the property. Of course, a Seller should acquire the services of an attorney to make sure that the release is accepted and done.
Short Sales are attributes to current home sales. They are making possibilities endless. It is a win win situation for the Seller and the Buyer. And better yet on behalf of the Seller the banks are definitely negotiating short sales, so take advantage of today's market.
Buyers if you are really considering buying a home, go for a short sale. Remember that home you wanted to buy in that neighborhood but really couldn't afford. Think again, many buyers are getting the home they always dreamed of and better yet they know that in the long run when the market turns they will be ahead of the game in equity value.