A short sale may not be right for everyone. But in the following instances it is important for a home owner to strongly consider doing a short sale.
If a home was purchased or refinanced between 2003 and 2008 then the chances are high that the home is significantly upside down creating a negative equity position. Most homeowners will basically be stuck in their homes until their property appreciates back up to the level it was when they received their current loan. In some areas this may not happen for 10 — 15 years. It is very important for a home owner to understand that even if real estate goes back to the historical rate of appreciation of 4% annually, and if that starts today… it will literally take 12 years to break even…