If your client/customer isn't behind yet, secure the listing and begin building the hardship case on behalf of your client.  The longer the house is on the market, the greater the opportunity to prove that your client is truly upside down on their mortgage.  Strategy is very important at this stage in the game.  Most lending institutions do not consider a homeowner behind on a payment until 30 days following the end of the borrowers grace period. They will be late, but not behind. You still have a ways until the lender would consider your client for a short payoff.  However, I would get the house on the market and attempt to sell it for what is owed, at least until you have your short sale package together and submitted to the lender.  On a conventional short sale, the lender will also want a offer with the hardship package.  Establish communications with the short sale lender and verify receipt of the short sale package.  Then, reduce the price from what is owed plus commissions, etc. to the short sale price.  If the duplex is 2-7 years old, use a net threshold to the bank of about 85%.  The bank usually won't take any less.  If the house is older and needs repairs, consider the following rule... 1% Reduction from 85% for every $5,000 worth of repairs.

Michael Spickes

America's Home Rescue

http://www.shortsalesolutions.biz/