With unemployment in Kootenai County reaching 10 percent once again, unfortunately there are homeowners unable to make their payments. Seeking to avoid foreclosure many homeowners are opting to sell short. What this means is, that they are willing to accept less than they owe for their home.

Many prospective homebuyers look at the current market and enthusiastically begin to search for the bargains they have heard of. A traditional home purchase, even a foreclosed home can be relatively painless once the homework is complete.

Some however, find short sales are not worth the amount of emotional strain it may take to bring the purchase to a close. The reasons for this are many:

First, a buyer has to agree and get their lender to agree, that a short sale is the best course of action to avoid foreclosure. Lenders will usually agree to entertain offers on a home for less than the owed amount because foreclosure proceedings are expensive. The short sale gives them a way to manage their losses and presents buyers an opportunity to buy a home at a discount, but the process is not for the faint of heart.

Let us say that you present an offer. The seller agrees that your offer provides them the relief they seek so they accept it. The offer is passed to the lender who will have their committee review the terms, calculate the loss and make a determination whether the terms of the sale are agreeable to them. Sounds easy so far, right?

The problem is that many lenders are inundated with foreclosures and short sales from all over the country which leads to delays. We often hear stories from our Realtor members that involve delays of several months, before ever receiving communication from the lender. This puts the debtor and the prospective buyer in nerve-wracking circumstances. Both want an answer, but neither can do a thing until the lender gives it.

So let's assume that you have thought all this through. You understand and are prepared to wait several months before you get an answer from the lender. You have made a good offer and the seller has accepted. Now, two weeks, two months, even six months later, your seller receives an answer from the lender. They are willing to accept the offer you presented for less than the amount owed on the home.

The lender informs the seller that although they will not be required to pay what they owe on the home, they may be required to pay income taxes on the difference between the amount owed and the amount you paid. If the seller is unable to make their house payments it is likely they will not be able to pay additional income tax so they may call off the sale.

If you have the patience for short sale opportunities you should pursue them. Find a Realtor with your same level of patience to help you through the process.

For a safe trip home, call a Realtor. Call your Realtor or visit www.cdarealtors.com to search properties on the Multiple Listing Service or to find a Realtor member who will represent your best interests.

Kim Cooper is a real estate broker and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your feedback and input for this column. You may contact them by writing to the Coeur d'Alene Association of Realtors, 409 W. Neider, Coeur d'Alene, ID 83815 or by calling (208) 667-0664 with your questions or commentary.