This is a very important question. Here are some more important questions:

1. Are you in trouble with your mortgage because you have had or are in a hardship? 
2. Are you in default with your mortgage?
3. How is your credit?
4. Have you contacted your lender to try to work out a plan to help you in this situation?
5. Do you want to avoid foreclosure?
6. Do you have to sell?  Short Sale: Noted Benefits

If you a yes to the questions above....You might want to consider a short sale.  A short sale is when you owe more than the market value of your home.  You fall short of what you owe.  Let me just advise that: Short sale approval is not AUTOMATIC!

Now your question will be HOW do I do that and how do I know I need a short sale?  You must apply for a short payoff if the sale of your house will not leave enough money to pay off all the mortgages, liens, back payments, and sales commissions on your property. If this is the case: Once you get an offer to purchase your home, call your lender immediately and get a financial package from them to make your request for a short payoff.  Short Sale: "The To Do List" The sooner you do this, the sooner the lender can complete its review of your short payoff request. Different lenders have a variable of packages for your individual loan workout options. Make sure that you request and receive the package for a short payoff.

As I have posted before - be prepared and get your ducks lined up:  Short Sale: Ducks in a row!

Time is of the essence! The longer you wait to receive and complete the package and return it to the lender, the longer it will take to get the short payoff approved. In this time, potential buyers of your property can and do get impatient which leads to their voiding the purchase and finding another property.  Short Sales: What might come up!

Why is the financial package so important to this request for approval?

Short Sale: Tips of the Day!

1. To explain how the default was unavoidable, involuntary and beyond your control
2. To make certain that you have experienced a financial hardship
3. To make certain that you NOT earn enough money now to pay the deficiency in installment over time
4. To make certain that you do NOT have enough money to pay some or all of the difference in a lump sum.

For free market evaluation of your home visit http://www.motheranddaughterrealty.com/

Check out my Mother and Daughter Blog for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team and we also focus in Short Sales and the Pre-Foreclosure process.  Our consultations are free.  Our aggressive marketing plan includes progressive online listing advertising.  If you are thinking of selling or buying a home in Northern California: Central Valley (San Joaquin/Stanislaus Counties), East Bay (Alameda, Contra Costa Counties) and would like a free Home Seller's or Home Buyer's Handbook, please call us at Perfect Financial Solutions 866-750-8282 or direct 510-284-7721 or email at brooksrm2042@aol.com