Is it TOO LATE to do a short sale?
If I find a seller wanting to do a short sale rather than have a foreclosure on their credit, when is it TOO LATE to be able to help them? Are we able to help up until the last minute before the foreclosure is finalized or is there a deadline in which the short sale is no longer an obtion? 
In my understanding, a short sale occurs between you and the bank, but of course you will need to let the homeowner know up front that this is what strategy you are using because it seems to me that when banks accept a short sale they don't want the homeowner getting anything out of it.
Get the homeowner to sign an authorization to release information form, call the bank, and negotiate from there.
I hope this helps. I myself I'm trying this strategy because most of the motivated sellers that are calling me have no equity - so why not try to create some!
Jason
"a short sale occurs between you and the bank"
That's not quite true. Suggest you read a bit more.
"If I find a seller wanting to do a short sale rather than have a foreclosure on their credit, when is it TOO LATE to be able to help them?"
Once a mortgagee has initiated the foreclosure process, it will be reflected
on the mortgagor's credit report. If the mortgagor can't resolve the problem, and the property is exposed at a forced, public foreclosure auction, that, too, will be reflected on the borrower's credit report.
If a third party intervenes and refinances the mortgage or otherwise cures the default or purchases the property and pays off the mortgage, the credit will continue to reflect the lawsuit in foreclosure (if yours' is a judicial foreclosure state), but NOT indicate a Sheriff's Sale, Trustee sale, or other taking by the mortgagee.
When is it too late to be involved?
That depends upon several factors including, but not limited to your level of expertise.
For many REIs, if a foreclosure sale has been scheduled, it is probably too late unless you have cash and can close before the foreclosure sale date. If a sale date has not yet been scheduled, it's possible to effectuate an acquisition.
Most mortgagee approved short sales can take from 90 to 180 days or more.