oid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed

In an effort to avoid foreclosure, some homeowners are contemplating the “short sale.” It’s an emerging trend that has many real estate professionals concerned.

Short Sale Definition

So here is your short sale definition -- a lender of a property allows the property to be sold for less than the remaining balance on the mortgage loan. It’s as simple as that. But a short sale definition should not stop there.

Currently, short sales represent a small segment of mortgage defaults. But that could be changing. Lenders generally don’t view short sales as a good alternative and are clearly not openly advertising that they may consider accepting a short sale. Most lenders focus on loan modifications and work with homeowners in an effort to avoid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed t

n

So here is your short sale definition -- a lender of a property allows the property to be sold for less than the remaining balance on the mortgage loan. It’s as simple as that. But a short sale definition should not stop there.

Currently, short sales represent a small segment of mortgage defaults. But that could be changing. Lenders generally don’t view short sales as a good alternative and are clearly not openly advertising that they may consider accepting a short sale. Most lenders focus on loan modifications and work with homeowners in an effort to avoid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed

But a short sale definition should not stop there.

Currently, short sales represent a small segment of mortgage defaults. But that could be changing. Lenders generally don’t view short sales as a good alternative and are clearly not openly advertising that they may consider accepting a short sale. Most lenders focus on loan modifications and work with homeowners in an effort to avoid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed

es as a good alternative and are clearly not openly advertising that they may consider accepting a short sale. Most lenders focus on loan modifications and work with homeowners in an effort to avoid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed

oid foreclosure. But in certain struggling markets, the opportunity to complete a short sale is increasing.

So how did all this happen?

Well there are several issues that contributed to the rise in short sales and hence the expanding short sale definition. After the huge run up in real estate prices that occurred in the recent housing boom, many homeowners were caught off guard when the market slowed. But financial institutions were also caught off guard.

Many lenders issued mortgages with low teaser interest rates to high-risk borrowers without sound underwriting. Many of these borrowers had little or no documentation of their financial capacity to make the mortgage payments and often these loans allowed minimal or no down payment. Accordingly, borrowers had limited equity and few choices when faced with financial hardship or decreasing real estate prices.

Years ago subprime borrowers would typically have been denied credit. But the 1980