If you are one of the many home owners who owe more on your home than it is worth, you can wait it out hoping prices will recover. But if you need to sell your home, you may need to go the short sale route.
As real estate prices continue to decline and the economy heads for what looks like an extended period of slow growth, more home owners continue to be underwater with their homes. Several statistics show that as many as 25% of home owners owe more on their home than their home is worth, resulting in negative equity.
In some real estate markets, short sales make up between 40% and 60% of all real estate transactions.