If you're already in default or near default with your mortgage payment, it's possible that you'll be facing the looming prospect of a foreclosure.

Foreclosure is often a long, tedious and expensive process that will benefit neither you or your lender/bank.

It's easy to just let go of any personal responsibility and just go on with foreclosure. The fundamental problem with foreclosure lies with your credit report. And, in many instances, you may be personally liable for a lot of money.

Foreclosure will blemish your credit report and that will affect if for some years. This kind of mark is like a negative financial stigma that will last for years.

Most people who are facing foreclosure usually opt for short sale instead. When your property is worth less than your outstanding obligation (debt) you are a good candidate for a short sale. Your lender will possibly agree to a short sale because it's less expensive than foreclosure proceedings, and it gets them some of their money instead of getting them your house, which they do not want.

Short selling your property gives you instant exposure to the market without fixing or beautifying your house. You'll get prospective buyers who are willing to buy your property faster than when you're selling at a regular "market" price.

You must realize that short sale will not make you any money. You'll do this to stay financially afloat and to release yourself from your existing mortgage, all while protecting your credit report somewhat, and helping to lower your financial liability.

I have to say that many people talk to me every day and say, "Richard, my house is worth $500,000 but nobody is looking at it and I've had no offers."

Well, here is the truth. Your real property valuation can be $500,000 in your mind. But only with actual sales of houses changing hands, comparable sales, are values set.

Even if you have put money into improvements. Even if the last comparable sale in 2007 was $500,000. This does not mean that you can sell your property anywhere near the $500,000 range. Property is only worth what a willing real estate buyer will pay a willing real estate seller.

If there are no recent sales, then when a house does sell, it could sell for dramatically less than what everyone expects (or hopes for).

And of course there are closing costs like Realtor commissions, as well as title fees and settlement fees. Even the costs of using a lawyer for foreclosure short sale negotiation may have to be paid out of the funds that the buyer brings.

I know about a nine-day house selling system that will be very useful when you want to get into short sale. Why sell your house over months, if you can get a market price for it in nine days?

Short selling needs a lot of information for anyone to process. That's why you need to listen to experts who can guide you through the process.

I can help you with the information you will need to make a great argument during negotiations with your lender. Short sale can be very beneficial if you know how to make it work for you. 

And watch this video on short sales and foreclosures. This is a screen shot — just type in your email and I'll get you to the real video. Thank you.