A short sale is like any other sale for a realtor. The time frame is what is very important for the home owner. You must act quickly, and must not be in foreclosure. Luckily many mortgage lenders don’t foreclose at 90 days like they once did. California homes are not going into foreclosure until the 180 mark in many areas. That means there is more time for a short sale. A short sale simply means you are selling the home for less than what you owe. Negotiations can be tricky for your realtor:
If the home has a second mortgage, and possibly a home equity loan, the realtor must negotiate with all three. Any potential buyer must be advised that the purchase is a short sale. Also keep in mind that if you are not behind on your mortgage lenders may not consider the short sale. It smacks of a complaint we received where the borrower assumed the lender was telling them to ruin their credit first so their request for a short sale would be honored.
Start the short sale as soon as possible so the sale can close before the home goes into foreclosure. If you just want to sell your home because the price has dropped the basic idea is the same.