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With more and more homes going into foreclosure, a new trend is emerging in real estate. It's called a short sale and is like a last-minute lifeline for owners.

"A short sale is a sale that is short of the mortgage," explains Marilyn Harra Kaye, president of MLBKaye International Realty. "You might have a $500,000 mortgage and the market may only be $480,000 or $475,000 so the bank has to approve the sale that will be short of the mortgage. You may or may not be not be responsible for the difference. It depends on the bank,:

Harra Kaye says short sales are a relatively new thing in the real estate world and are becoming increasingly popular, especially in areas with a lot of foreclosures like on Staten Island and in parts of Queens.

In an effort to prevent a home from going under, it's a last-chance effort for the bank to recoup its costs and for the owners to sell and salvage their credit.

"With a short sale, it could appear on your credit report, but it's not like a foreclosure. You will be able to most likely get a mortgage later on depending on a short sale," says Harra Kaye. "And, of course, you can get lucky and get the price way up and up up with the difference and then you are free. So you really should approach this in a positive way."

The bank first has to give the green light for a short sale. Then they'll hire the broker. She says even if you are feeling down and out - you should work with the broker to help sell that property because the more you get, the less you owe.

If you are buying a short sale home, it could be a great opportunity because you're getting it for less than market value. But there is a lot to know.

"The buyers financing has to usually come from the bank selling short the real estate. They call the shots. They might say all cash. They might say financing," she says. "If you have an 800 FICO score, or they may say financing only up to 50 percent. But they call the shots, it's like an auction. They set the terms up but whatever you do, you have to be prepared to sign a contract immediately and close usually immediately."

It moves so fast you might even want to bring a contractor or engineer with you when you first go to see the property.

Also, it's imperative for both buyers and sellers to hire an attorney. Each situation varies, so a lawyer could help you navigate the process.

Bottom line – it's a win-win. Buyers get a steal, banks get a deal and owners, even if they lose their homes, wont lose their shirts too.