This question is surely crossing many peoples minds these days with the current economic situation in relation to jobs and housing. Let’s first start off by explaining what is a short sale. Basically a short sale occurs when you are not able to make your mortgage payment for what ever reason, so your bank agrees to let your property be sold at a discounted amount in relation to what you owe.

To keep things simple we will use round numbers. Lets say you have a mortgage on your home for $500,000 you are currently struggling to make your mortgage payment or maybe not even able to pay it, and to top it off your home only has a saleable value of $300,000 which means you are already upside down by $200,000. In many cases but not all the bank will allow your property to be sold short of what the actual mortgage obligation is, in this case you owe $500,000 the value is only $300,000 so the bank agrees to let the house be sold for $300,000.
You are allowed to sell your house for $300,000 which all goes to the bank, and the bank generally agrees to forgive you on the balance owed of $200,000. In most cases they will send you an IRS Form 1099 leaving you responsible for income taxes on the $200,000, generally this is calculated as regular income but you need to consult a tax professional, either a competent tax attorney or CPA to find out.

Now knowing these facts you must also take into consideration the fact that you are not allowed to walk away with any money. Also, the bank in this particular case just ate $200,000. So taking into consideration the fact that your home is now worth less than you owe, you are falling or are way behind on your mortgage payment. Also remember to take into account how much you may have put up for a down payment on the home. Once you have considered all these variables you are on your way to making a decision.

Other things to think about, you will need to move out of you home, so you will need to find another place to live. This will require some cash out of your pocket if you are going to rent generally your first, and last months rent plus deposit to move in. Another option some people end up taking is having to move in with another family member.
Generally a short sale has a less detrimental effect on your credit score than going through with a foreclosure, so please keep this in mind as well.

You now have all the factors you need to take into consideration if you are thinking about doing a short sale on your home. The choice is yours, make sure you weigh all your options and then you can make the call as to whether or not you want to do a short sale. If you are already behind on your payments or, received a notice of default from your bank then time is of the essence, so the best thing you can do is become pro-active instead of re-active. If you feel the need consult with an attorney or real estate professional.
We may be able to help you with your short sale or other real estate problem.

https://connectedinvestors.com/ablesdeals/ibuy/button/+Short+Sale+Specialists