Don't foreclose! Do a short sale NEW YORK (CNNMoney.com) -- Short sales are the hottest thing going in the distressed-property market, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals...... Ever popular short-sellers market experiencing growing pains Now, with 12 percent of all residential listings in the Tampa Bay area now representing sellers trying to avoid foreclosure by marketing their home for less than they owe, some analysts are blaming some uneducated listings as one of the primary culprits for the drop in listing values.... Short sale (real estate) A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.... The new exit strategy: A short sale For all the homeowners who are upside down and can no longer make their mortgage payment (because of either a job loss, divorce, or an option ARM that’s resetting higher), up to now the only option was, well, letting the bank foreclose. That’s not a good option since a foreclosure sticks on your credit record for at least 10 years. But some experts are now advocating a “short sale.”