Question: This is starting to be more of a common question rather than an obvious answer before you ask the question. 

When the owners go to their lender(s) and ask for a loan modification or other workable options and the lender take their time about telling you they cannot help you and the best option you have is doing a short sale. 

And in the same breathe they tell you that you should list the property at what you owe them on the property!!!!  This my friend.....is bad advise.  And the Answer: In this market you cannot afford to list the house at what you owe the lender.... you have to be competitive, realistic and serious about getting offers in order to even get a short sale approval.

•      Please note:  Listing your home at what you owe the lender and if that is more than what the property is worth, is called over priced property.  And believe me no one is going to rush to purchase your home if it is obviously over priced in this market!

 •      Attention: This is not a short sale! This is not reality! By over pricing your home during these market times: you will waste your time, waste your agent's time and most urgent.....you will also be putting yourself closer to having your property go into foreclosure!

 •      Be reasonable.  Get an agent and let that agent do the proper research on what is going on in the market worldwide and locally and give you an intelligent evaluation of your property and a suggested listed price that help your property attract potential buyers and get serious offers on your property.

 •      Remember time is of the essence.  If you are about to get behind, already behind or been behind a long time..... You have no time to lose.

The average time the lenders allow for you to be in default is 2-3 months before they will record a Notice of Default on your property which is the same as being in Pre-foreclosure.  The timeframe for pre-foreclosure is only 90 in California.  Once those 90 days have expired, the lender will have to record in your local newspapers and with the court the notice of trustee sales date (this is the date you will be foreclosed on). They have to post it on your door too.

•      Imagine if you will.... Listing your home at what you owe the lender, getting no offers and being foreclosed on and then finding out later on that you probably could have sold the house had you listed it at today value or about 10% less than that in order to get potential buyers to consider buying your home!

Get an agent with knowledge of Short Sales --- as soon as possible after you have requested and researched all your options with your lender.  Let the bank know if you do not want to lose your home and see if they have any options to help you.  Let the lender know you cannot pay - go back and try to make a deal.  Short sale is only one option that you may have and only the lender can tell you that. 

If the lender cannot help you, get that agent that can list and sell your home.  Once you get the agent, rely on that agent to get your offers and not let the lender give you advice that will possibly put you closer to foreclosure. 

WEBSITE: http://www.motheranddaughterrealty.com

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Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US.

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