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When I first started in short sales, I saw them as a 'grab 'em while they last' type of investment. They almost seemed like a real estate clearance sale where deep discounts were offered on quality products, but only for a limited time. I predicted short sales were going to be an excellent way of doing business for three to five years. I assumed that, like many economic trends, they would fade as the market fluctuated.

Years later, I am thrilled to say that I was absolutely mistaken.

I don't see an end to it anymore. Even with changing interest rates, banks are still giving loans to people with credit scores in the 500's and offering mortgages with dangerous 'perks' like 100% financing and no money down. They are setting people up for failure, and the consequences are financially and emotionally devastating to their victims.

With that in mind, I don't see the high foreclosure rates changing, just fluctuating. As disastrous as that may be for many homeowners, short sale investors can offer them a solution that will not completely cure their credit wounds, but they can certainly stop them from bleeding.

Short sales are here to stay because life is unpredictable. Unfortunately, possible unemployment, illness, and other potential factors are not always considered when people take on enormous loans. Gone are the days when families set aside savings for such 'rainy day' mishaps. It is more common for homeowners to gamble with their credit, and banks are happy to assist. This combination results in mortgage delinquency time and time again.

That being said, as long as foreclosures exist, short sales are possible. With that possibility comes a ray of hope for the homeowner and financial opportunities for the investor.

Investors did not create the job loss, medical expenses, death of a loved one or other hardship that resulted in the homeowner's inability to pay the mortgage. Instead, investors present a solution to the financial aspect of those problems. They leave the homeowners better off than before they met them. Regardless of whether or not the deal closes, the investor will be an asset in the homeowners' life. Short sales will help the homeowner as long as the investor is ethical, provides honest information, and works with the homeowner's needs in mind.