Short Sales & the Potential Rise in Foreclosures: Why Expertise Matters

When the housing market shifts, one word starts creeping back into real estate conversations: foreclosure. And whenever foreclosures rise, short sales often follow.

While today’s market isn’t in a 2008‑style crash, rising interest rates, high home prices, and economic uncertainty are putting pressure on some homeowners. That pressure could lead to more distressed properties entering the market—and with that comes a growing need for expert guidance.

What Is a Short Sale?

A short sale occurs when a homeowner owes more on their mortgage than the property’s worth and the lender agrees to accept less to avoid foreclosure. It’s not a quick or simple transaction—banks take big hits and the process requires meticulous negotiation and documentation.

For buyers, short sales can offer significant deals—but they require patience. For sellers, they can protect credit and reduce damage—but only if handled properly.

Why Foreclosures Might Rise

Several factors could contribute to higher foreclosure rates:

• Rising mortgage rates: Many homeowners face higher payments, especially with adjustable-rate resets.

• High cost of living: Inflation and economic uncertainty strain household budgets.

• Housing unaffordability: In markets like Boise, tight margins leave little room for financial hardship.

Even a modest uptick in foreclosures could make short sales more common—and help if handled right.

Why Many Short Sales Don’t Close

Here’s the hard truth: less than half of listed short sales actually close, primarily because of mismanagement. That’s often due to agents lacking experience in navigating lender requirements and processes.

Some further insights:

• Traditional real estate agents handling short sales often fail, with over 50% ending in foreclosure due to inexperience—not lender reluctance..

• Inexperienced agents may estimate only 20–25% of their short sales close. In contrast, seasoned short sale specialists report success rates of up to 90% 

  
  

Extreme, but clarifying: mismanagement—not the bank—is often the reason for failure.

Why the Right Agent Matters—Especially Boise’s Best

Short sales are complex. They require accurately prepared documentation, polished lender negotiations, coordination with junior lien holders, and massive patience. Without experience, crucial steps get missed—and deals collapse.

At Boise’s Best Real Estate, we have a proven short sale track record. We’ve guided dozens of sellers and buyers through short sales successfully—closing far more than half of what’s listed, with success rates rivaling top specialists in the industry.

When short sales become more prevalent again, you don’t want an agent who’s just heard about them—you want true short sale expertise.

Housing markets cycle—and a slight rise in foreclosures likely means more short sales. These situations demand deep knowledge, persistence, and a strategic touch—qualities we’ve built our reputation on. If you’re buying, selling, or story-watching, you don’t have to go it alone. Boise’s Best is here to guide you.

When to Contact Boise’s Best About a Short Sale (Before It’s Too Late)

1. Missed or About to Miss a Mortgage Payment

• If you’ve already missed one payment—or know you won’t be able to make the next—don’t wait.

• Early communication gives more options, like loan modification or a short sale before late fees and credit damage pile up.

  
  

2. Loan Modification Denied or Unworkable

• Many homeowners first try a loan modification, but if the lender declines or the new terms aren’t affordable, that’s the time to call.

• Acting quickly can keep you out of foreclosure proceedings.

  
  

3. Owing More Than the Home Is Worth

• If your mortgage balance is higher than your home’s current market value, a short sale may be the only viable path to sell.

• Boise’s Best can give you a market valuation and walk you through lender approval steps.

  
  

4. Sudden Hardship

• Job loss, medical bills, divorce, or other hardships can make payments impossible.

• Lenders require “hardship documentation” for short sales, and getting that prepared early can fast-track approvals.

  
  

5. Notice of Default Received

• If you’ve already received a Notice of Default, time is critical.

• The window to act before foreclosure closes fast, and an experienced short sale team can still step in—but sooner is better.

  
  

6. Want to Protect Credit

• A foreclosure can stay on your credit for 7 years or longer, while a short sale—though not invisible—typically has less severe and shorter-term impacts.

• Calling before foreclosure starts gives you a chance to minimize damage.

  
  

7. Unfamiliar with the Process

• Many homeowners think they must wait until foreclosure begins to talk about short sales. That’s not true.

• Lenders often prefer a successful short sale over foreclosure—it saves them money too.

  
  
  
  

Why Boise’s Best?

• Proven track record: Our team has closed hundreds of short sales across the Treasure Valley, even when other agents failed.

• Higher success rates: While many short sales collapse due to agent inexperience, Boise’s Best has a history of approvals and closings, over 90% close rate.

• Local expertise: We know how Treasure Valley lenders and banks operate—because we’ve worked directly with them.