Banks are overwhelmed with short sales at this time.  Here is a list of items to expect while doing a short sale in the Los Angeles, Orange County, San Diego and other California areas  (other states and counties have different laws so some of these may not pertain to you depending on where you live):

1. The bank or lender wants to see the entire financial picture, so the bank will need a copy of back taxes, paycheck stubs, bank statements, etc.  They will also want to know what all of your assets are.
2. The bank may want you to sign a promissory note for the difference in the amount sold and the amount owed on the property.
3. When the bank gives final approval on a short sale, they may request that the escrow close in as little as 20 days, or sometimes sooner.
4. As the seller, you cannot receive any proceeds from the sale.  None.  Period.
5. Your real estate agent, escrow company, and title company may have to work for reduced fees.
6. The banks are very overwhelmed with short sales and many times a decision can take up to 60 days.  Although, recently the approval process has been streamlined at many lenders.
7. The property may be foreclosed on during the short sale process, because the bank can not process the short sale in time.  If you have a strong enough agent, you could be able to get the foreclosure postponed.
8. Do not expect to receive any information on a regular basis, as there will be weeks that go by with no news from the lender…which can be perfectly normal.  But just in case, call your contact.
9. The bank will want to get a BPO (Broker Price Opinion) and/or an appraisal of your house.
10. Be patient.  This is the best policy.  Try to avoid being stressed out over something that you are not able to control.  If you are in the hands of a good well trained real estate agent, you should be good.