I Owe More on My Mortgage Than My Home Is Worth. A Friend Suggested That I Consider a “Short Sale”. What Is Involved?

A short sale is when a mortgage lender agrees to satisfy a mortgage for less than the full loan amount owed on a property.

While each mortgage lender has a slightly different approval process, there are some similarities. First, your lender will ask you to submit general financial information including but not limited to bank statements, tax returns, pay stubs and a budget. Next, your lender will ascertain the value of your property.

If you intend on attempting to “short sell” your property we recommend obtain the services of a real estate broker experienced with short sales and consult your tax accountant for advice on possible adverse tax consequences.

Attorney at Law

Blado Kiger Bolan, Tacoma, Wash.

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