How late in pre-foreclosure can a homeowner decide to do a short sale?

That home is yours up to the day the foreclosure takes place, but keep in mind, you need permission from your lender to complete a short sale.. That being said, you should absolutely pursue a short sale rather than a foreclosure... if your home is foreclosed, then there are mandatory waiting periods before you can purchase another home.. The shortest waiting period is VA with 2 years, and FHA with 3.. The longest waiting period is 7 years for conventional. The clock starts ticking when the home is taken out of your name.. Not the day you move out.. We have seen people move out of their homes because they wanted to let it go to foreclosure, however the lender didn't actually foreclose for 1 year later.. And since during that whole year the home was still in their name, the clock never started.. So it's really best to short sell then foreclose. Plus, the Mortgage Debt Forgiveness act is due to expire in December.. if your home isn't sold or foreclosed prior to that date, you could have a substantial tax liability.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You can do a short sale at most any time during pre foreclosure. You don't want to wait until you have a Notice of Trustee sale to start the process but after you receive a Notice of Default it isn't too late. I'd be happy to answer your questions in detail if you 'd like to give me a call. Brad DavidsonBroker - 01416432714-961-8442