This guest host has

has

has Andrew Horowitz from the Disciplined Investor

podcast and today I'm Money Girl

I will be discussing a term that unfortunately many of us will need to know.

Mortgage short sales.

Having trouble making your mortgage payments or know someone who is close to foreclosure but hope to avoid it and looking for

another way out well you're not alone today with a housing market plunge a slowing

economy gas at four dollars a gallon and massive job layoffs. Many people are on the brink of losing

their homes. Every day, hundreds of honest hard-working people who have always

paid their bills on time and were living the American dream decide to just

pack up and walk away.

The proof is in the pudding, as we know that foreclosures are at an all-time high.

And what's worse is that in a year or two when the housing market begins to even out, those who

foreclosed on their homes will be stuck with bad credit and unable to qualify for a loan

to purchase a new home.

But there may be a better alternative.

It's what is now being termed the mortgage short sale.

Basically, a short sale is when a financially distraught homeowner who still owes quite a bit of principle on their loan agrees with their

lender to sell the house for less than the balance of the loan outstanding.

The proceeds from the sale are then used to repay the lender. The benefit is that the

borrow gets to walk away and owes nothing more and the lender

...