Is A Short Sale In The Cards?

I spoke with someone this morning who is contemplating a short sale.  Based on the dialogue that they’ve had with their lender they believe they will be unsuccessful with getting the lender to modify the loan.  The amount of the existing loan is nearly 50% greater than the value of the property.  They are just a few years away from retiring and nearly 60% of there income goes to service the home loan.  What would you do in this instance?  We advise that you seek the counsel of your tax advisor as well as a real estate attorney to see what the implications to you might be.  If you decide that a short sale is the appropriate action to take,  then market your property and find a willing, qualified buyer.  Even with that, it is not a sure thing that the lender will agree to a short sale.  But given that you have a willing buyer and made the appropriate application to the lender then your chances for success are greatly enhanced.  Of course this is a simplistic example but we hope you get the idea!

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