With the market being like it is and more and more people at risk of losing their homes in foreclosure, I think it is beneficial for agents/Brokers to learn about short sales.  So this post in more for information on the short-sale. So what is a short-sale? Simply put...A short-sale is when the homeowner get the bank to take less than the amount owed on the note. Many sellers do not realize this may be an option for them. It does not matter ( in most cases) what type of financing your are carrying, FHA, VA, CONV...if you have missed a payment or know you are having financial hardship and could be missing a payment in the future, short-sale may be an option for you verses the alternatives of foreclosure or bankruptcy.  Look at it in a time line format...

30 days past due... you are accruing late fees, maybe some phone calls

60 days past due... you are getting a letter, and maybe some not so nice phone calls...borderline harassment

90 days past due... The bank will file a notice of default with the court house

90-180 past due ...  Redemtion period

So thats about 6 months to sell your home and with todays current market, where homes are declining in value and sitting on the market longer, banks realize that to accept a short-sale could be in their best interest. It can cost up to $80,000 to foreclose. Not to mention the risk of having a a vacant home sit can lead to vandalism, further reducing the value. The banks are seeing more and short-sales offers and you could say they are overwhelmed with the amount of files they are faced with. Having a clean file is important. They are not looking at them on a first come first serve basis. They are looking for the cleanest easiest file.

As the home owner you will have a pro active roll in making sure we have all the info to prepair an organized presentation.

The banks decisions are based on

* What are your monthly expenses

* What is your monthly income

* Do you have any assets, such as other properties

So in conclusion, If you are anywhere on the time line, you may be able to do a short-sale. Make sure you contact some one who understands the short-sale process.   Thank you for reading, I hope I have informed you and if you have any questions please don't hesitate to ask!