Homeowners who have lost their jobs or are suffering other types of economic distress may be thinking foreclosure is the only option. However, short sales have become hot over the last year or so, and there is every indication that they will become even hotter in the coming months when the federal government begins providing incentives to lenders to close short sales. “Banks have ramped up short sale approvals,” said one spokesman for a company that connects short sellers with buyers. “They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.” A short sale is a financial arrangement where a lender allows a homeowner to sell a home for less than he or she owes on it. It works for homeowners because they can get out from under that debt obligation. It’s an attractive option for lenders for these reasons:

• Even though they take a loss, they can get much more of the investment back than they would in foreclosure
• If the home goes into foreclosure, they assume ownership of the home and have to deal with their loss on the mortgage and taxes, maintenance and other costs
• If the home goes into foreclosure, many foreclosures sit on the market for months or more and can be vandalized, stripped of plumbing fixtures, etc.
• It is much better to facilitate the transition from one owner to another so the house doesn’t sit vacant and depreciate

Short sales have gained in popularity recently and accounted for 17 percent of all residential real estate sales in February 2010. If you’re looking for Louisville homes for sale, but want a great deal, you may wish to consider buying a short sale home. For more information and the area’s best selection of Louisville real estate, call Louisville Properties at 502.744.9504 today. Resource Link: http://money.cnn.com/2010/03/29/real_estate/short_sale_explosion/index.htm