If you are considering doing a short sale on your property, the first thing you need to do is determine if you have a hardship that will qualify you for a short sale. The fact that your loan balance is greater than the current value of the collateral (in this case your home) is not considered a hardship. If that were the case then every person who bought a car would have the same argument. After all, they say the value of the vehicle drops 25% the minute you drive it off the lot, so most cars are "upside down" from the get go.
If you do have a qualifying hardship, then the next step is find an experienced short sale agent that you feel comfortable with. You need to know that you will be working very closely with this person for the next 60 - 180 days. You will be sharing your personal financial information with them. You will be sharing your story with them. And you will be counting on them to communicate this information effectively to your lender and negotiate the sale, what is for most people, the largest asset you own and was at one time the culmination of a dream to own a home. You will be sharing your frustations and your hopes with them. You need to feel confident that they will be there for you and keep you informed of what is going on. Lastly, beware, many agents will tell you they do short sales, not all agents close short sales.
Know that short sales do happen on a regular basis. Many short sales close every day. Unfortunately, it is also true that many attempted short sales end in foreclosure. If both you and your realtor are diligent, you can make this work. Let me know if I can be of service to you in any way. And Dare to Dream.
Real Estate Consultant
RE/MAX Palos Verdes Realty