Lenders will usually not accept a Short Sale on Current Loans

I am often asked, “Can I do a short sale on my home if I am current on my loan?”   While the answer is yes, we can try, the reality is that until a loan becomes delinquent, there is no motivation for the lender to take the haircut and agree to eat the shortage.  Once a loan is 90 days late, the bank suddenly is concerned that they will have to take back yet another home.  They do not want another home in thier inventory and become willing to accept a loss.   Unfortunately, some lenders will not even entertain a short sale offer unless the loan is greater than 60 days late.