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Even as foreclosures continue to grow, homeowners and lenders are increasingly using methods to avoid them that were largely unknown before the housing crisis.
Many lenders have become more open to loan modifications or short sales instead of foreclosure, said Ken Ryan, a branch manager with Long Realty. At the same time, real-estate agents and bankers have grown more accustomed to dealing with those procedures, he said.
Short sales, especially, were largely unheard of during the housing boom, but they have become common enough that Long Realty has set up a team of agents who specialize in them.
Through the complex short-sale process, homeowners sell their house for less than they owe on it, and, when specified through negotiation, the lender agrees to forgive the rest of the debt.
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