Many property owners are finding that stopping foreclosures in Houston is possible thanks to a process known as a short sale. While this might not be the most ideal situation under which to sell a home, it can provide a means to avoid foreclosure and bail out of debt. It can pay for borrowers to seek lender cooperation to make a short sale possible.

Understanding A Short Sale

A short sale takes place when a lender agrees to allow a home to be sold for less than the loan amount. This is done to stop foreclosure from happening and to enable the lender to recover as much of the debt owed as possible. Not every home is eligible for a short sale and not every lender will allow one to take place. When the financials add up to the better choice for the lender, however, this process is possible.

The Benefits Of A Short Sale

Going through a short sale will undoubtedly mean that proceeds from the sale of a property will not line the owner's pockets. Still, there are some benefits. These might include:

?Stoppage of the foreclosure process. When a short sale is agreed to, many lenders put the foreclosure process on hold for a time. If not, the sale of the home will take care of this.

?Credit protection. While a short sale might result in a settlement notation showing up on credit history, this process saves the huge mark a foreclosure can leave behind.

The Downfalls Of A Short Sale

While some short sales are accepted with no strings attached by the lenders, not all are. Depending on the terms of a short sale, a borrower might find they are:

?Liable for the difference. A lender may require the homeowner to make up the difference between the sale price and the loan price.

?Liable for taxes. The IRS often sees the difference in the loan amount and the sale amount as earned income. It is possible a borrower will have to pay taxes on this amount.

Stopping foreclosures in Houston is a concern for many. Short sales do provide a way out of the situation. It can pay to pick up a phone and talk to a lender about this alternative.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Short Sale 101
This occurs when the net proceeds from the sale of a home are not enough to cover the sellers' mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner's commission. The seller is unwilling or unable to cover the difference. Some ? although by ... more...

Short Sale Training - The Biggest Short Sale Mistake
I'm writing to let you know about the #1 way to speed up the Short Sale process that very few Realtors actually know about. Not using this strategy is the Biggest Mistake most Short Sale Realtors make. It may not be what you think, because it's not a "traditional" real estate strategy... I can't ... more...

Short Sales - 3 Key Factors Gurus Never Tell You About How To Do Short Sales
For those of you who are new to the Short Sale arena or new to real estate investment, let's first define what a "short sale" is and what it's SUPPOSED to accomplish. A short sale is the process of negotiating with a Mortgage Lender to convince them to accept less than the Homeowner's mortgage ... more...

Short Sale Questions
The main stream media continues to be rich with stories about the struggling real estate market, here in the Sacramento area as well as across the country. They generally revolve around the increasing number of foreclosures, the mortgage crisis and now some of the government programs that may or ... more...