Another thing about foreclosures: "It's a very expensive process," said Champaign real estate lawyer Ward McDonald.

Which is why some banks and homeowners have been considering short sales as an alternative.

Back in 2007, local Realtor Kyle Harrison took a course in Florida on short sales and since then has handled everything from a $15,000 sale to a $400,000 one.

"I'm being flooded with inquires," said Harrison, whose file is at about 60 cases.

What happens during a short sale is the homeowner sells his home to avoid foreclosure, for an amount that is less than what is owed the bank. The bank must approve the sale and be willing to accept the lower amount, he said.

One of the benefits of going with a short sale is it typically does not take as long as a foreclosure and sheriff's sale, he said. And even though the bank may "take a hit on the front end," with the home being sold for less than the debt amount, it means the bank will not end up owning the property.

There are also some tax ramifications to the seller of a short-sale, added McDonald, who advises people to consult a tax attorney before going through with one. The borrower or seller should also be sure he or she is released from the entire loan amount, he said.

A short sale can occur during the foreclosure process, but as with negotiating a modified loan, the earlier in the process the better, Harrison said.

The tricky thing is finding a buyer, preferably one who will pay cash and who doesn't have contingencies for the sale. And there's the challenge of working with the sellers.

"A lot of sellers just want to bury their heads in the sand. They just don't want to deal with it," at least not until they see their names and their home addresses posted in the newspaper notifying the public about the pending auction of their property, Harrison said.

"People are embarrassed. ... It's hard to say, 'I need help,'" he said.