Perhaps your adjustable-rate mortgage has ballooned into a Hindenburg hovering over you waiting to explode. Divorce and loss of employment are also common causes of bitter financial situations, routinely resulting in missed mortgage payments and upside-down finances. The recent increase in pre-foreclosure homes in California has sparked the growth of short sales.

There are numerous benefits and advantages involved in real estate short sales. Banks won't need to go through the arduous and expensive process of proceeding to foreclosure and the seller gets to escape from a perilous financial situation. The documentation collected to reach an agreement between the seller and the lender about the poor financial state of the seller convinces the bank to actually reduce the amount owed on the home loan.

Short sales require patience on the part of the seller. Remember, banks are dealing with a lot of homeowners and the whole process might take some time, possibly several weeks. A good sense of understanding will keep your stress level down while your pre-foreclosure home is being considered for short sales.

An experienced realtor will assist you in the necessary preparations. One key ingredient in this recipe is a willing and able buyer. An agent, working for a smaller commission than usual, will find a suitable candidate for you.

Another good piece of advice to consider while waiting on a pre-foreclosure home to be considered for short sales is to seriously watch your own spending. Don't rack up more debt on your credit cards with vacations, lavish dinners and luxurious television sets. The lender will see this and won't be willing to help you out of your dilemma. In short sales, it is instrumental to be completely convincing in your picture of financial hardship.

Short sales can be a complicated path without expert help. A couple of decades ago most of the property in California was owned and mortgaged by people who worked and lived in California. Nowadays most mortgages are controlled by out-of-state companies, making it difficult to contact the appropriate persons. Loan service officers are often told to hold steady on a certain amount and not settle for anything less. Oftentimes false phone numbers are given that make it nearly impossible for anyone less than a professional to get hold of the right people. A skilled realtor will handle these difficulties with no problem at all.

But in the end, short sales work to the greatest advantage possible for you and your pre-foreclosure home. They offer you the best opportunity to escape a terrible situation. All you need do is your homework and find someone with the know-how and willingness to work with you through the labyrinth of real estate short sales. No one is more qualified than a realtor skilled in the processes of short sales.