Over the last twelve months I have sold 23 homes. Of the 23 homes I sold, 9 were short sales where the lien holding bank gave the seller I represented $2500 to $8500 to help them move after short selling their home. In addition, the banks forgave all of my seller's debt related to the sale. In addition, the banks generally responded in less than four weeks after we presented to them an executed contract and related short sale paperwork.
Seller's who faced financial hardship and took the initiative to sell their home with me via short sale received the following:
Forgiven debt and mortgage from the bank(s) who held mortgages with the home Avoidance of foreclosure and all the negative aspects that go with it (eviction and foreclosure on their personal record) Lessen the negative impact on one's credit score- short selling allowed them stop the negative marks on their credit score associated with missed mortgage payments. Avoidance of having to file for bankruptcy Relocation assistance in the form of cash The ability to manage the process of transitioning out of their old home
The moral of this story is that if you are behind on your mortgage payments, don't just ignore the problem- be proactive and do something about it. If you attempt to short sale your home, you will likely come out better off.