There must be alot of misinformation floating around about what happens in a Short Sale. The general public has heard of them-- and like the perfect golf swing, they think they know a little bit about them. For the most part, I have found that a large percentage of people...accountants, lawyers, bankers, Realtors, included... have many different ideas about what happens in a short sale and when it is a viable option. Most people don't know how to grip the club. Much less, hit the ball.
I have a client who came to me and said he needed to short sale his home. I asked for the pertinent information to send to the bank... and he said "HARDSHIP ?? What's that?? My income was over a $1Million dollars in the last 3 years, and I'm getting divorced, and my house is'nt worth what I have in it. Help me. Oh, and I can't give you a financial statement."
What we have here, is a failure to understand who Short Sales were created for. People who have lost jobs, spouses... people who are so far behind, that there is no other option. The public needs to be educated about Short Sales and given factual information. What do you do when you want to learn the swing.... you go to a pro. When you have Real Estate questions-- don't rely on what your neighbor told you-- go to a pro!
If you are looking for a great real estate agent in the Palm Springs area... let me 
one for you!
Kathy Schowe 760.333.8886
Intero Real Estate Services in Old Town La Quinta 
SchoweProperties.com☼ KathySchowe.com☼LivetheDesertlife.com
Bravo! so much misinformation abounds, buyers and sellers need well informed Realtors to assist them.
Misinformation has been going on since the dawn of time. Everybody wants to be a know-it-all. Well not everyone.
I met with a potential "short sale" seller last week who had a similar circumstance. He owned a modest home with a sizeable mortgage that was purchased when he was a "carefree" batchelor. ONce he married, he and his wife purchased a large, palatial home. They kept the smaller home and casually rented it to young family members for a few years. Now, the "balloon note" is coming due in a few months and the loan balance far exceeds the current value of the property. He wants to sell as a "short sale" to avoid bringing $35K to the Closing table. The man earns over $500K annually. I esentially told the man, "Boo-Who. . . you have no hardship. You are in better shape than 98% of the public. Suck-it-up and take your lumps, and move-on with your life."
I met someone who was thinking about "short selling" the house they bought a year ago (via short sale by the way) because they noticed that property values in the neighborhood had fallen further still. Give me a break!
I agree with this assessment on short sales. I am wondering if the homeowners who have the grueling tasks of paying those over paid mortgages will ever get the kudos that they so deserve. I hope the market comes back for them........