Understanding YOUR Possible Short Sale If you are upside down you might be close to making a decision to move toward a short sale. So lets discuss what your options are prior to asking the bank to accept your short sale.
You may hear the following if you contact your bank. They may ask you to come up with the total amount owed by a set date. This is known as reinstatement. IS there a possibility of you catching up or becoming more financially sound in the near future? Forbearance may be considered. Which means the bank would suspend or reduce your payment for a period of time. You may be able to work out a repayment plan and resume making monthly payments plus a portion of the past due payments each month and eventually catch up your payments.
Or, your lender may be part of the MAKING HOME AFFORDABLE PROGRAM and qualify you for a loan modification or some other program. I would list them specifically…BUT they are changing faster than I can type! 
Worth a look tho…
Another great short sale help resource is the Arizona Foreclosure Prevention Task Force Workbook. This can provide insight to the specifics of the Arizona short sale process and how best evaluate…or proceed with your short sale. PLEASE…get professional opinions before you consider foreclosure and bankruptcy. And..if you want to speak to someone personally about the potential of a short sale…I would be happy to chat with you about YOUR specific situation.
One size does NOT fit all in the world of short sales. What is the most IMPORTANT piece in a short sale? Get Legal Counsel. Real estate attorneys will be able to advise you about your legal liability and finacial obligation. Get a good attorney. Bad legal advice will cost you more in the long run. I have some names of attorneys I have worked with that my clients have been very please with.
Another very important part of the puzzle? Talk with a tax advisor. You really MUST speak to a tax attorney or tax specialist and make sure that the legal advise you received and tax advice both make sence to YOU! If there is any question as to your liability…you will need to make further inquiries. Upon completion of a short sale, some tax issues can arise. Because of this,you should discuss these possible issues with the appropriate professional.
Regardless of where you are in the process, you need to be adequately informed an counseled prior to entering a into a short sale.
