Maureen,

Each property is unique, just as the sellers circumstaces are unique. Which then leads to each bank having a slightly different process.

So timeframes vary greatly depending on when a home can be lost to foreclosure.

1. If a homeowner does nothing and does not attempt a short sale the home can be lost in few months.

2. If a homeowner lists the property and gets an offer the home can be in short sale limbo for 6 to 12 months and in some cases longer.

3. Then there always seems to be that one friend, who said they lost their home in less than a month or they lived in it for 24 months without payment. Those circumstances are often doubtful and unless I konw for a fact that is what happened, I do not believe them.

Each circumstance is unique and the banks do not all play be the same rules.

Best of luck!

Shawn Hermosillo

Maureen, Just because the house is being offered as a "Short-Sale" has little to do with the foreclosure process. A "Short-Sale" simply means the sellers owe MORE than what the listing price. The property doesn't have to be in foreclosure nor does the Seller have to miss any payments. I just recieved a REO (real estate owned or foreclosed property) from a major lender and I checked the MLS to see it was in "Continue to Show" status and had been on the market for over a year! I left a letter on the door step for the occupant or owner and was called by their "Loan modifier" who said they were "in negotiations" with the lender for a "work-out" and then he asked if I was soliciting business! I had to tell him he "HAD" been in negotiations and I would fax him over a copy of the deed showing this lender as the new owner!
However, if one has quit making payments the "Short-Sale" process may delay the inevitable NOD (notice of default) which triggers the whole foreclosure process. From that date you've got 122 days until sale at the court-steps. So if you've got a lot of time on your hands, don't mind interest rate locks coming and going, love frustration, calls that go un-returned for weeks, and an average time on the market of 190 days with the chances of 1 in 10 in successfully closing the escrow, then by all means seek the "Short-Sale" out!!

I agree with Eric. There have been many homes in my area on the market as short sales for over a year. It seems that is really depends on the bank and if there is more than 1 loan.

Hi Maureen,

Currently there is a moratorium on foreclosures by most major banks that was part of the whole "bailout" program. This is due to expire at the end of January in most cases, but may be extended by the new administration. Your situation is a bit longer than most I have dealt with; I wish you the best of luck!

Hi Maureen,

There used to be a window of about 4 months total, it's depending on the bank whether they foreclose on the property or not, I have heard of people that have not paid their mortgage for a year and are still living in their house. Also i case there is an offer on a house that results in a short sale and there is a notice of trustee sale, the bank can decide to work with the offer and delay the short sale. So right now, there is not a set time frame for foreclosures.
However, properties that are being sold as short sales offer great opportunities, I have helped my clients buy a 'short sales' and the whole process from offer to close was 6 weeks. But this is unusual.

It really depends on the bank. I have seen houses on the market for over a year as Short Sales, and some that last only 6 months. Sometimes if a seller declares bankruptcy, that can also stall a foreclosure.