The basics are this: at 31 days at 5pm is 30 days late; at 61 days NOI (notice of intent); at 91 days NOD/Lis Pendens (depending on the state; NOD = notice of default).

In most states you have a 6 month or longer foreclosure time line. This means it takes 6 missed payments or more before a lender can foreclose and then an additional 30-60 days before the occupants are evicted. (eviction can be longer in the case of a valid lease).

In a short sale context it is important to keep an eye on the foreclosure time line: if 5 payments have been missed then it is logical to assume NOD (notice of default) has been filed. It also means that possibly a NOTS (notice of trustee sale) has been filed or soon will be filed.

The sale date is an important date to keep in the back of your mind, especially if no offer has come in after a while on the market. Trustee sale can be postponed close to trustee sale but that’s going to depend on the offer that is being submitted (influencing the numbers on the HUD), the submission itself, wether loan mod was being pursued, etc.

This is where the short sale agent and the seller need to stay realistic. It is still possible to get a deal done at this late hour, but chances go down as the sale date is approached. That doesn’t mean that postponement shouldn’t be aggressively pursued of course. Short sale is still the better option for the bank if the numbers indicate so.