BluegrassForeclosure.com

From Business Lexington: “Right here in Kentucky, nearly 10,000 homes were foreclosed in 2009. That’s a 34 percent increase from 2008 and a 90 percent increase from 2007. In Fayette County alone, there were 150 new foreclosure filings in December 2009.

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The Wall Street Journal reported on December 1, 2009, that the government has now established “final guidelines (that) should make it easier for some financially troubled borrowers to sell their homes. The guidelines are designed to encourage the use of short sales, transactions in which the borrower with lender approval sells the home for less than what is owed on the loan.

. . . .

So what is a “short sale?” It is a petition to the lender to accept less than, or “short,” the value of the full mortgage balance due on the loan. This allows the homeowner to avoid foreclosure and, often, to be relieved of the deficiency debt (what they still owe the lender after the short sale). And it allows the lender to clear their books of the bad loan without acquiring the property (and all the costs associated with such an acquisition).”

Don’t be fooled though, short sales take a lot of work and if you are willing to put in that time, you can get some really good deals on some excellent properties.  If you are interested in learning more about short sales and how they work, leave a comment.