Will my lender approve a short sale even if I'm not behind in my payments?

The short answer is, it depends on your lender.  Some lenders may require that you are behind on your payments before they will consider approving a short sale.  However, many lenders now are approving short sales when the homeowner has never missed a mortgage payment.  The homeowner just happens to be in a negative equity position and need the short sale in order to sell their home.  One way to find out whether your lender will accept a short sale file for approval on a loan that is current is by submitting a short sale file to your lender.

I'm behind on my payments, how long will it take for the bank to foreclose on my home?

Most promissory notes give the bank the right to start the foreclosure process or file the "notice of default" as soon as you are 30 days behind on your mortgage.  Although the banks have this right, most banks will not proceed with the filing of the notice of default until you are 90 days or more behind on your payments.  The bank has the sole discretion on when they want to begin the foreclosure proceedings and all banks made this decision differently and within different parameters.

When the official "notice of default" or "foreclosure notice" is filed (whether it is filed after you miss 1 mortgage payment or 3) there is a 91 day period of time between the filing and the filing of the "notice of trustee sale".

This is the third in our series on Short Sales...make sure to check out Who is Eligible for a Short Sale? and Are There Any Credit Consequences to a Short Sale?

If you are behind in your mortgage payments or are having financial difficulty and think you might want to discuss the option of a short sale, please call us at (916) 405-5766 or send email to.  We are here to help!

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Lori Mode & Bruce Durham, Keller Williams Realty, Elk Grove