Deborah, if you have equity in other Real Estate and or investments, they will most likely deny the short sale. The lenders ask for a financial statement from you for that very reason. Bank Of America is currently adding a phrase to their short sales that they reserve the right to serve you with a deficiency judgement, so even though they approve the short sale and release you from the lien they can still come after you in the future. IF the lender does accept a short sale, which they might, then I suggest you close with an attoreny that is VERY knowledgable with short sales so he can make sure that release is a FULL release. And find a Real Estate agent that had closed dozens or hundreds of short sales so you trust they know what thye are doing. And ask for their success ratio up front. 9 out of 10 short sales FAIL and that's due a LOT to agent's that have no idea as to how to handle a short sale. Hope this helps!
Sep 5, 2009