If you have decided to hedge your bets and try and sell your home before you foreclose, you are in luck...as more and more banks are trying to work with homeowners who have their homes on the market. This is still a great option if you can't make payments, can't modify your mortgage or your just going to walk away(however quite a bit of leg work). A short sale will no doubt "ding" your credit for 12-24 months but in no way will it be a foreclosure on your credit for 7 years or more. If you are just opening your 1st filing note in the mail, you still have time.

The home is going to be on the market for less than what you paid...and we will work with the bank on this. You need to know once we get an offer the real work begins for you and your real estate agent...endless calls and paperwork are needed but if you are up for the challenge, it does and can work...

A question I have heard over and over is "Will I be in debt to the bank for the part of the mortgage not covered, or money not covered by the offer?' 2 things, 1 if it is your primary residence, NO you will not have to pay that money back. Most banks send out at the Short sale closing table a HOLD HARMLESS letter that an attorney(usually closing attorney) will have you sign, this is for your records and the banks...2...if your short sale is a rental/income property, you will be responsible or taxed on that money not covered.(please see a tax professional)...in the event(1%) that a bank sends you a 1099-c in the mail at the end of the year(which they claim because they have lost money-more than $500.00)...then you must file form 982(this form wipes that debt back out)....what is it? It states you have made nothing from a short sale on the property(again, consult a tax professional for all the details).

Now, getting to the place above... the closing table, A TON OF RED TAPE, but again if you have a good agent who has done these deals before, and you all stay on the same page together, it may be the best option to choose. All banks are different, being persistent and having those "Ducks in A Row" will no doubt help in getting the deal done. Also, keeping everyone in the loop as much as possible...the buyer and buyers agent may get bored with waiting, I always suggest a weekly phone call with any and all updates, even 2-3 times a week just to keep excitement up for the buy and also so that everyone knows we are working diligently to get to the same place as quickly as possible.

Lastly, as an experienced short sale agent, I must express frustration with the process as a whole, I do wish banks made this to be an easier situation(it is stressful enough for people but sometimes banks make you feel like they would rather foreclose than to work on the offer you have just sent them)...navigating and learning what each bank does and what each expects is sometimes a guess...my best efforts with getting short sales approved and almost everything I have ever done well in life is be such a pain in the A-- that people finally cave in and deal with me so that we all can move forward, just ask my husband, he would say that is true!