Q.   Will I be taxed on the amount forgiven?

A.    No. On December 20,2007, the Mortgage Forgiveness Debt Relief & Debt Cancellation Act was signed

       into law to ensure that any deficiency written off as part of the short sale process will not be taxed.

Q.   Do I have to be late in my mortgage payment before starting the short sale process?

A.    No. You do not have to. Sometimes starting the short sale process earlier is better to

       give you ample time to find a qualified buyer.

Q.   Will I be required to answer summons and or attend court hearings?

A.    No. Short sale is a negotiated settlement unlike foreclosure and or bankruptcy which is

       court settlement.

Q.   Do I have to pay closing costs?

A.    No. All your closing costs such as: broker fees, attorney fees, back taxes you owed,

       title company fees, survey, assessement fees if applicable, will be paid by your lender.

Q.   What about my second mortgage?

A.   The second lender will be informed about the short sale situation and part of the proceeds will

       be given to the second lender as a condition to release the lien.

Q.   Do I have to be present during the closing?

A.    No. You do not have to be present. You can execute a special power of attorney to your lawyer

       and pre-sign the closing documents.

Q.   During the duration of the short sale process which typically lasts for 6-7 months or longer, what shall I do?

A.    Your lender prefers you stay in your home and maintain your property to attract qualified buyers.

Q.    Do I have to continue paying my mortgage while the short sale process is going on?

A.     No. You can stop paying your mortgage and property taxes the moment the short sale

        process starts until its completion.

Q.   Can I just voluntarily surrender my deed to my lender in lieu of foreclosure?

A.    You may; however, it may not be the best option. Your lender still reserves the right to demand from

        you to pay the deficiency between the sales price of your property ( when your lender finally does sell it)

        and the amount still due on the loan.

Q.    Will my short sale situation be kept confidential?

A.    Yes. Unlike foreclosure which is a public record, short sale is treated confidentially.

Q.    What are the documents needed to apply for a short sale?

A.     Hardship Letter, Financial Disclosure, last 2 months  pay stubs, copies of 3  months recent personal checking

        and saving accounts, copies of 2 years income tax returns and copy of latest mortgage statement(s).