Short Sale happens when a Lender allows to the sale of a property that is less than the amount owed on a mortgage. Purchase and Sale Agreement (from Realtor), Addendum to Purchase (from Realtor), Authorization to Release Information, Two Years FULL Tax Returns, Two Months Bank Statements (Most recent), Last Two Pay Stubs, Fill Out Financial Worksheet, A Handwritten Hardship Letter, If FHA, Form 90036 and Homeownership Counseling Certificate include a short sale package.

With short sale, the rest of the homeowner’s debt is forgiven. Rather than suffer the lengthy and expensive foreclosure process, a homeowner agrees to a short sale though the sale of your Palm Beach Gardens FL home, for instance is less than the owner owes on the mortgage.

Foreclosure is definitely not the only option. A short sale is a better alternative. For one, a potential buyer will get the home at a reduced price. Then, the seller will not face bankruptcy but will get out of the mortgage liability. On the hand, the lender will not be facing the arduous protracted process of foreclosure even if he agreed to a loss from accepting a short sale.

Short sale is a better option to foreclosure, however, waiting for the lender to agree on it can be a lengthy process. But if you’re on the way to short sale your Palm Beach Gardens FL Home, Realtors advise that you seek help from a real estate agent short sale expert. Here’s what they say:

  1. Check if the indeed the Lender agrees in writing that all debts in the short sale process were forgiven.
  2. Make things clear with the Lender how the short sale will be reported on your credit report. A short sale can give you a negative credit report although the report will just say as ‘settled for less than the full balance,’.
  3. Ensure that you ask your agent about the tax repercussions of short sales. So, if your Palm Beach Gardens FL home was agreed to a short sale for $30,000 less, then 1099 for $30,000 will be issued by your lender and you would have to pay taxes on.

Short Sale, as Realtors say, is a win-win situation. Foreclosure doesn’t have any credit advantage over Short Sale yet, the latter is an advantage over the former if you ever decide to buy another home.