What is a Short Sale?

A short sale is when a lender accepts less as a mortgage payoff than is owed them typically to avoid a possible foreclosure auction. Why would a lender take less than is owed them?  First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to foreclosure at public auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.
A short sale is beneficial to a home owner because it allows them to avoid the negative implications of a foreclosure.  It also allows the home owner to control their own destiny, rather than having the lender evict them from their own home. 

What is the time frames for a Foreclosure?

The first step in the foreclosure process is the Filing of a Notice of Default.  This is a recorded document with the County and is public record.  This typically occurs after the home owner has missed 3 or 4 months of mortgage payments.  From this point there is a 90 day period until a Notice of Trustee Sale is Recorded.  The trustee sale is the actual auction of the home at the courthouse steps (not always at the Courthouse).  Once the Notice of Trustee sale is recorded there is a 20 publication period, A copy of the notice is published in a newspaper of general circulation once a week for three consecutive weeks. The notice is also posted on the property and recorded at the County Recorders office.

Notice of Default                      90 Days
Notice of Trustee Sale               20 Days
Foreclosure Sale                       110 Day from the Notice of Default