Short sale! Short sale! Read all about it!

If you are a buyer in today's market you've heard the term countless times. While these properties seem to be a better deal, you know that it can take anywhere from 2 -4 months to close escrow on a short sale. It's a waiting game.

If you are a homeowner in today's market you watch these ‘short sales' in your neighborhood sometimes close at prices below market value. You wonder what it will do to the value of your own home - especially with a seemingly increasing amount of short sales across the nation.

A year or two ago the term was rarely used, while today, it is used in every day real estate talk as often as we say ‘refinance' or ‘interest rates'. It seems to make sense according to CNNMoney who says that "1 in 5 mortgages [are] underwater" as of the beginning of the month.

When one of these homes with an ‘underwater mortgage' goes on the market, you have yourself a short sale. The bank must accept less than what is owed on the property or else it goes into foreclosure and the bank takes ownership. The process is long, and especially complicated when there are two lenders on an account. This means a longer negotiation process between all parties involved, and yes, you guessed it, a longer waiting period.

A word of advice:

For the buyers: If you have time, short sales can be worth the wait. If you don't have time, look for regular sales and REO properties. You will have a simpler negotiation process.

For the Homeowners: Stay positive and hang tight. You can have your taxes reassessed to help alleviate some financial strain. Also, you can look into re-financing to a lower interest rate.

Life happens, and jobs are relocated. Sometimes moving isn't a ‘want-to' but a ‘have-to'. This is the time to call a professional and discuss your options.

As always, I want to be here and available to help answer all of these difficult real estate questions. It is a pleasure to be of service in any way.

For the full CNNMoney.com article, go here. California is mentioned specifically and it provides a valuable nation-wide perspective on real estate matters that we face today.