Foreclosure search site RealtyTrac and new real estate networking site RealtyJoin announced a joint marketing partnership this week. “RealtyTrac will promote RealtyJoin to its members and site visitors as a social network for people interested in connecting with other real estate investors.

RealtyJoin will promote RealtyTrac as a resource for real estate investors looking for information and analytical tools for foreclosure and bank-owned properties,” said RealtyTrac spokesperson Tammy Chan.

Each site will link back to the partner site, Chan said. There are also plans to incorporate an RSS feed from RealtyTrac at the RealtyJoin site and eventually to host a community forum within RealtyJoin by RealtyTrac, and some of RealtyTrac’s foreclosure and real estate trend information may be incorporated into the RealtyJoin site, Chan added. RealtyJoin launched in late January.

Buyers often shy away from considering short-sale listings, either because they’ve had a bad experience or have heard horror stories about the deals that take forever and never close. Buyers’ agents sometimes steer their clients away from sales that are subject to the lender agreeing to accept less than what they’re owed, because it can mean a lot of work for nothing.

Short sales will probably be a part of the home-sale market for the next couple of years. They provide opportunities for buyers, particularly those attempting to buy a home in a low-inventory market.

Before you enter into a contract to buy a short-sale listing, make sure that you understand the process and set your expectations accordingly. One of the biggest differences between a short sale and a conventional sale is that short sales take longer. Although many lenders are streamlining the short-sale process, it can still take 45 days from contract acceptance to receive lender approval.

Make as clean an offer as possible, but be sure to include contingencies for inspections and appraisal and loan approval. Your contract should also include a short-sale addendum that includes a time frame for lender approval.

Listing agents often want the buyers’ contingencies to begin when the offer is accepted by the seller. However, buyers usually prefer to pay for inspections and the appraisal after lender approval. As in all home-sale transactions, these items are negotiable.

Your short-sale offer will stand a better chance of lender approval if you are preapproved for financing. Include verification of the funds needed for your downpayment and closing costs and a preapproval letter from your lender with your offer. The ratified purchase offer and supporting documentation from the seller and listing agent will be submitted to the lender.

Short-sale approval is often contingent on the buyer and seller making concessions. This means that the lender could ask the buyers to pay a higher price. The seller could be asked to bring money into escrow so that the lender nets more from the sale than the contract provides. If either party is unable or unwilling to do so, the transaction will fail unless the lender reconsiders.

HOUSE HUNTING TIP: Regardless of how committed you are to buying, it’s not wise to bid on every short sale you come across that might work for you. Approximately one-third of the short-sale listings on the market don’t close, either because the lender won’t approve a realistic price, or because there are multiple liens secured against the property. Generally, if there are more than two liens, the likelihood of the short sale going through is slim.

Don’t look at a short-sale listing until your agent has talked with the listing agent to find how much ground work has been done. Does the listing agent have the sellers’ written authorization to negotiate on their behalf with the lender? Has the listing agent been in touch with a representative of the lender’s loss mitigation department? Have the sellers provided all the documents that will need to be submitted to the lender when an offer is accepted, such as a financial statement, hardship letter, bank statements, pay stubs, etc.

Stay away from short-sale listings where the listing agent doesn’t have the seller’s cooperation. For instance, the sellers may not have their paperwork in order to present to the lender. Understandably, it’s difficult for most people to face losing their home and good credit. But, without the sellers’ cooperation, the sale won’t go through.

THE CLOSING: Short sales require a lot of patience, a cooperative effort between the buyers, sellers and agents involved, and frequent communication to keep everyone involved in the process up-to-date.

First it was the residential real estate collapse. Now comes the commercial real estate collapse! Commercial has lagged behind residential by 12 to 18 months, but is now here. Commercial foreclosures are all over now.

This will be much bigger than the residential situation we have seen over the past three years. Commercial properties are financed differently than residential. They typically have mortgages on them that balloon (need to be paid off) in 3,7, or 10 years. When these loans come due, they are typically refinanced. In today\’s depreciating market, a lot of these commercial properties will not qualify for refinancing. The economy has prompted businesses to downsize or close putting more pressure on commercial property owners. Often rent reductions are given to attempt to keep tenants. Even with reductions, many businesses are closing their doors. Third thing is there are no government programs to help businesses keep their properties. (unless it is a bank or car manufacture!)

If the owners cannot refinance or pay off the mortgage, the owners may try to hang on, but foreclosure is often the outcome.

These properties can then be sold at great prices and are often snapped up by investors. They often lease them out at a positive cash flow.

Commercial property owners may be held responsible for the difference amount forgiven for the short sale, and the amount forgiven may be required to act as income on their tax return. Commercial property owners should contact their tax and legal teams before continuing to see how this may impact their overall tax and financial situation.

This is the clear solution as the U.S. market goes through a major restructuring. The opportunities for profit for investors and removing liabilities for owners will be huge.