It’s almost certain in Silicon Valley.
Because of the overwhelming number of short sale offers, it can take months before the bank can review yours. If there is a second lender, it could be another few months before you get a response.
Meanwhile, if the seller misses enough loan payments, the foreclosure process starts almost automatically, with a definite time-line. It’s common that foreclosure will happen before the bank can respond to a short sale offer.
We’ve noticed that home values in some local areas have slipped lower than they were in 1997. Chances are good that if you bought a home in the last 10 years, you owe more than your home is worth.
Before you try a short sale, ask your lender if they will consider a Deed In Lieu Of Foreclosure. Just call customer service. This is one of the least understood, yet best alternatives to foreclosure, and well worth the time to check it out. You might not qualify, but if you do, it may save you from foreclosure.