.. There is no cost to pursue a short sale, and the lender almost always covers all the closing costs.

.. We are a real estate broker and the lender allows for a standard real estate commission to be paid to us at closing.

.. Most lender(s) will consider the debt settled and waive their right to pursue any remaining balance. The lender will issue a 1099 (gifted income) at the end of the year which you're tax preparer must include. You should discuss any tax implications with your tax advisor and ask about possible tax waivers like insolvency. We have not had a tax advisor recommend a foreclosure to a client over a short sale.

.. The timeline can fluxuate greatly. If everything goes our way, it can be as little as 3 months. If the bank gets a high appraisal and we can't get a matching offer, then it could take over a year.

.. We can also remove IRS liens and credit card liens to allow the sale of the house. However, the IRS debt will still be owed.

.. Most lenders will allow $3,000 for relocation assistance, and he have had several borrowers get over $20,000 (upto $35,000). This is however completely upto the lender. It is not a negotiation, they will notify us during the process if their is an incentive.

.. No. A vacant property can sometimes disquality you for a short sale. Lenders expects the home owner to maintain the property (grass, snow, heat) during the sale process to fetch fair mark value. Also if a lender sees it is vacant, that gives them an easy opportunity to weigh the costs of a faster foreclosure without any eviction costs.

.. In many cases no. It's advised to pursue a Short Sale immediately upon determining that you will not be able to keep the house, now or in the future.

.. Foreclosure is the absolute worst outcome possible and can usually be avoided. Even after a foreclosure, the borrower still owes the bank for their loses and they will get a deficiency judgement to pursue ongoing collections. Many borrowers then file for bankruptcy. Foreclosure and Bankruptcy are the worst hits to your credit and will be on the report for 7+ years. There is a lot of stress that comes along with not being in command of the process and just waiting for the bank to take the house. Many people will live constant fear for years avoiding calls and door knockers. All of this can be avoided by taking action immediately with a cooperative Short Sale.