You have other options other than a short sale that may be more beneficial to you. There is a program called HAMP that will allow you to modify your loan and there is another process called Deed in lieu of. Either will depend upon your lender's approval however, those options are available if you are interested in retaining your home. If you choose the short sale way, that is a possibility as well. You can call or email me for additional information.
Katherine Brown MItchell Realty
The process involves some keys to it.
1. You need to have some sort of hardship - lost job, divorce, lost income... something that would cause you not to be able to continue making payments.
2. You'll need to have a Realtor list the home (see FannieMae's website) that specializes in short sales.
3. You'll need an actual offer in most cases to even start the conversation
There's a package that we get to get together to "prove" that you cannot afford the home. Then we need the offer. Depending on the home, I may be able to bring you an offer within 48 hours.
Contact me if you have any questions!
If you get with the right agent, get the home listed for a price to sell, get a contract contingent upon banks approval then the bank might delay the foreclosure to work through the short sale.
Each short sale is different. If you have only one Mortgage that makes it less complicated or if your multiple mortgages are with the same bank, it is easier. You should put your home on the market with a Realtor, and the bank will be easier to work with if you have a qualified buyer who has written a contract on your home. You should also write a hardship letter and get it to the bank explaining what your circumstances are. Please write in full detail. If you have any question do not hesitate to call. It is also important if you are working with an attorney to be sure he or she is versed in short sales.
The first thing you need to do is to discuss the process with your lender to see if they will accept a short sell. If they do there is paper work you will need to do with them.
The second thing is no one can say how long it will take. You can get a general idea from the market statistics for your area.
Best of Luck
There really is no answer other than it varies as does the success rate. I'm happy to give you more specific info if you can be more specific with your question. In the meantime - a recent blog post might help -