Will my lender allow a short sale?

While all transactions are unique, it is in the best interest of the bank to accept a short sale. It is far more time consuming and costly for the bank to foreclose on your property.

Do I have to be behind on my mortgage for the bank to accept a short sale?

While most banks require that you are behind on your mortgage, not all banks have the same requirements. Please contact me with your bank information.

How much do I have to pay a Realtor to sell my home as a short sale?

The bank will pay the Realtor commission.

What will the bank require from me to do a short sale?

Most banks will require a copy of your last 2 pay stubs, last 2 months of bank statements, 2 years of tax returns, and a hardship letter explaining your circumstances as to why you can no longer afford your home.

What is HAFA?

Home Affordable Foreclosure Alternative. (www.hafa.gov) HAFA provides incentives to distressed homeowners in connection with a short sale.

I heard that I will have to pay taxes if I do a short sale, is that true?

Generally, when a lender is unable to collect the full amount due on a note, this forgiveness of debt constitutes a taxable gain for the borrower. Many lenders have been and will be issuing a Form 1099 to borrowers for this debt forgiveness. Under certain limited circumstances the Mortgage Forgiveness Debt Relief Act of 2007 may eliminate the consequences of this gain, however this only pertains to owner occupied dwellings. We highly suggest you speak with a CPA if you are concerned about tax ramifications.

What if the bank rejects the short sale offer?

Most lenders do not normally outright refuse an offer unless its grossly under market value. However they may propose a counter-offer to the . If that is the case, then we just put the home back on the market and keep lowering the price until we can come to an agreement with the bank.