Our short sale just closed. We are in California and had a BofA 1st, Greentree 2nd and a third. We orginally stopped paying July 2011 (big change in our income) and had to either go the foreclosure route or do a short sale. We decided to try the short sale.
Our agent sent BofA an offer in November 2011, they countered pretty quickly asking for just a little bit higher price and the buyers approved. We thought the buyers walked at that point, but there was just a miscommuncation.
Green tree accepted $4900 from BofA on a $80,000 2nd and the third is just a release of collateral issue. Both the 1st and 2nd will not pursue deficiency, we're in CA and both were purchase money. We had heard nightmares about Green Tree, but they approved right away. We did send Greentree a Cease and Desist letter as soon as we stopped paying because they will drive you crazy with harrassing calls as soon as you're late.
They both stated they would report "paid in full for less than amount" on our credit.
We had good RE agents working for us and it was really a smooth and easy process. We submitted our paperwork once and that was it. Other than reviewing the approval letters from BofA and Greentree, the only other thing we did was sign the final paperwork as in any sale. Maybe short sales are getting easier/smoother because there are so many?
We're glad to have it over with. Best of Luck to everyone else looking to short sell!