What Is A Short Sale?
Before we can answer that question, we first have to define what state of real estate puts you in the pre-foreclosure status. A situation that would make Short Sale a possible option.
The American Dream; once people are in a position to buy a home, they have high hopes and faith in their present and future ability to earn income, own and keep that home. Banks also base that probability on a loan, however, proving your buy-ability through the scrutiny of a loan pre-approval process.
When the American Dream meets unexpected life surprises. As they say life happens, and we don’t know what life surprises would cause you to be late in your mortgage payments. For example, full time hour cut backs, job loss, an accident, illness, or injury, divorce just to name a few.
So what happens when you are late, and how late is late enough to get you into the pre-foreclosure state?
The late status is as follows:
Day 1 to Day 16 (paid by the 16th grace period no late fee and no late reporting, you are considered current)
17th Day of the month (non-payment) a late charge.
Day 17 -30 Days late you get a late charge.
60 Days late you get a notice.
90 Days late you are in default of the loan.