1. The first step is to contact the Loan Service Department of your lender. That number will be in the documentation you receive about making your payment. Make sure you keep copies of all correspondence.
2. The lender will ask you to submit a financial statement to prove that you really don’t have the financial assets to repay the loan after you sell the home.
3. Contact your real estate broker to list your home for sale on the market. If you do not have a real estate broker, I would love to assist you and put my expertise in this particular situation to work for you. Please contact me.
4. Once you have received a bona fide offer, submit all contracts and paperwork to your lender, who in reality isn’t really your lender. They just service the loan for your actual lender, called the investor. Your paperwork is submitted to the investor for a decision.
5. There is another decision maker in the process assuming you have Mortgage insurance which covers lenders in the case of loan defaults. This way they are able to justify high loan to value loans.
6. If the investor and the insurer both agree, your short sale is approved, and you can sell you home. Your short sale does count as income and you will have to declare it to the IRS.

If you find yourself in this position and are considering a short sale contact me first at (970)846-5551 or email darrinfryer@earthlink.net . I am very experienced in working with banks and will help you every step of the way to make sure you understand the process and are treated fairly.