Selling Short
One of many indications of tough economic times is the increased reliance on real estate Short Sales. This is the circumstance where a home owner sells a home for less than the dollar amount still owed on the mortgage. There can be tax, credit report and legal implications to this type of transaction, so it is critical to discuss your situation with a real estate attorney before deciding to do so.
The most important factor in executing a short sale is the seller’s relationship with the lender. Begin by talking directly to a decision-maker in the company to get their guidelines and parameters. You should also write the lender a letter authorizing them to disclose personal information to qualified parties and a detailed Hardship Letter which spells out the circumstances that have caused you to seek this relief. The lender will also be interested in seeing bank statements, verification of income and assets and an estimated closing document that details what the likely payouts will be at sale time. Your real estate agent or attorney should be able to assist you in this process.
About.com has more valuable information about Short Sales
here.