However, not all short sales are in foreclosure. Indeed, many people apply for a short sale when they have a financial hardship that is imminent and they are still current on their payments. Divorce, lay off, job transfer, and illness are all short sale reasons that can be imminent. You do not have to wait until the hardship has actually arrived to apply for a short sale. Indeed, I am seeing an increase in potential short sale sellers who want to remain current on their mortgage but they are applying for a short sale now before they fall behind. Often high wage earners, or those with significant assets feel that they must miss payment to drive home the issue of financial hardship to a lender and they then consequently drive their home into pre-foreclosure. However, contrary to popular belief, you do not have to miss payments to qualify for a short sale. You should explore the possibility of a short sale before you are in default.
How Time Can Run Out On Your Santa Maria Short Sale
One of the worst things that distressed Central Coast homeowners do is waiting until the clock is ticking before contacting a short sale agent. When does the clock start ticking? I tell people it starts ticking when you stop paying. Ideally, if you know a financial hardship is imminent, you should begin exploring your options, including a short sale, before any payments are even missed. In its recent Open Letter on Short Sales, the California Association Realtors reports that according to surveyed California Realtors® only about three out of five short sales close.
