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In today's market we hear more and more people discussing short sales - without a lot of information or giving each other wrong information.

So what is a short sale?

A short sale means that you sell your property to a buyer for less than you owe on your mortgage- that includes the home equity lines as well. 

For most mortgage companies you don't have to be behind in your mortgage.  As a realtor I work with an attorney on the short sales because you not only want to have forgiveness on the mortgage but also the promissory note that you signed when you signed for your home. This isn't automatic, some companies are requiring some sort of payback - but it depends on your cash flow and whatever other type of criteria the short sale department decides.  As you have probably deduced, this isn't a science, every sale is different, every mortgage company has different criteria, but it is so much better to do a short sale rather than "letting it go to the bank" the difference on your credit score can be as much as 300 points.  Congress is right now debating the forgiveness of the gain from the forgiveness of the loans.

You can't take anything out of the sale, so you just have to understand that it is going to sell below what you would want it to, but the market has dropped and for many people they cannot refinance because they owe more than the home is now worth.

But believe this, you are not alone, there are a lot of short sales, for the seller it is away to begin again - for the buyer it is a way to get a great deal.

Pat Baker, Leslie Wells Realty, Inc  941-527-8669  toll free 866-434-4056  www.patbakersellsflorida.com