The key to a successful short sale is the ability to show the lender a reasonable offer from a prospective buyer. That means the property must be priced at market value - even if it's below the balance due on the loan.

If you believe you might be a candidate for a short sale, it's a good idea to ask an experienced Realtor, title company or short sales specialist whether they can help. Any realty commission, for example, can be negotiated with the lender.

Derek Kirk, who was Chief Financial Officer for AMC Realty in 1994, said he has seen lenders jammed with requests from people who are merely equity-drained but not facing hardship.

"Short sales are for a certain niche of people," said Kirk. "You actually have to hand the lender a full financial package showing the hardship.

"People seeking short sales without hardship are clogging the system."

Any negotiations should include a discussion of how the lender plans to report the transaction to the credit bureau: whether it's reported as a debt satisfied or a debt settled for less than the full amount.

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