I have been studying the advantages of short sales against foreclosure. The best course of action to take when you want to get into a process that you know nothing about is to gather information about it as much as you possibly can.

You need to find a short sale specialist if you want to short sell your house. You can consult a real estate agent, a lawyer and an accountant if you need to get the best information possible.

But it is best to find a real estate agent who can sell the house quickly. And then find someone who has a track record negotiating short sales with lenders. They are usually two separate people.

The buyer will bring funds in at the closing and those funds can pay everyone including your broker and the short sale expert.

So, let me explain what a short sale is. A short sale simply means that you're selling your property (house) for a lower price than the amount that you owe.

Why do you need to do this?

Well, short selling is really a viable alternative to a foreclosure proceeding. If you must sell, and you can't get a price that will pay off the mortgages, a short sale is the best option for you and for your lender.

There are two major advantages to a short sale. One is that you help your credit. The other is that you cut down on your personal liability.

When your credit report shows a foreclosure, its effects in your credit report is quite negative. Especially if it accompanies multiple late payments.

With a short sale, your credit record will not be hurt that much. Your credit record will reflect Paid Settled. Paid satisfactory or better yet Unrated are better but Paid Settled isn't so bad either. A short sale may have worse impact on your FICO score and on your ability to get a qualifying conforming Fannie Mae or Freddic Mac loan within four years, but so what?

Depending on your negotiation skills, you can possibly get an Unrated mark. Unrated is neutral. it doesn't affect your credit negatively or positively. But even if you don't get Unrated, a Paid settlement or a Paid satisfactory rating is not as devastating as a foreclosure report.

So now please watch my tell all video about how to short sell your house in nine days, how to maintain good credit, how to avoid personal liability and owe zero taxes in many cases.

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.