Step 1
Get mentally prepared for the lengthy short sale process. It requires a lot of persistance and paperwork to get it approved. But, if your lender agrees and we get your short sale approved – you could be forgiven of your debt! You avoid foreclosure and the deficiency worries that linger as a result!
To get started: set up an appointment. Give us a call at (561) 901-3333… or fill out your information here.
Step 2
Gather the following documentation. This is supporting paperwork all lenders request when evaluating your request for a short sale. Please click here to download a checklist.
- Hardship Letter
- Tax Returns – last 2 years
- Financial Statement – showing your monthly income and expenses (in most short sale scenarios, this shows a negative cash flow each month)
- Recent Mortgage Statement(s) – for both lenders
- Bank Statements – last 2 months (must have all pages)
- Pay Stubs – last 2 paychecks (or unemployment, disability history)
- Authorization Letter – allowing us to speak with the Lender to negotiate on your behalf
- Bring any correspondence you have from your lenders.
3rd Step
Talk to a CPA or an attorney if you have legal questions. Understand, by law your Short Sale lenders must send you a 1099 for the deficiency. However, there are exceptions which you need to be aware of in which you will not have to pay income taxes on this amount. The first is the “Mortgage Debt Relief Act” allowing primary residences an exemption to paying taxes. In addition, most short sellers are insolvent which means your debts exceed your assets at the time the short sale was completed. It is important for you to speak to your accountant so you do not have any income tax surprises at the end of the year.
