Alex Charfen made a great blog posting this morning.Everyone keeps talking about strategic foreclosures… I don’t think there is anything strategic about a foreclosure, you just let it happen. Some articles mention that it takes 3 years to be foreclosed on… yes, in some states, not in CA. Our official time line for the foreclosure process is 3 months and 3 weeks. First the notice of default, then after minimal 3 months the notice of trustee sale which will take place 3 weeks after that.Of course with the overload, it takes the banks longer to take action. I know quite a few homeowners living in their home without paying their mortgage, some for a long time now. Must feel strange… However, the bank will take action. A more dignified option to foreclosure is a short sale. The Making Home Affordable program has forced banks to accept short sales.And… even better, plan your short sale. As mentioned, the foreclosure process takes time and there is plenty of time to strategically plan your short sale. The million plus market has the highest deficiency rate: 1 in 7 is 30 days or more late on their mortgage.For those who for some reason might have some savings set aside: retirement accounts are not affected by a short sale. You might allocate some savings to a retirement account.An other benefit from a short sale: you can negotiate the deficiency judgement, this is lot harder with a foreclosure.Have a great day!Mirjam