Short Sales are a very unique type of transaction.  There are silver linings to this type of transaction, but there are also drawbacks.
I feel very strongly that clients should consult with a good real estate attorney and a CPA prior stepping into the arena, but here are some
bullet points to consider:

Positive Elements of Short Sales:

* From a psychological standpoint,  the seller will retain some sense of dignity knowing that they were able to sell their home..
* You won’t suffer the social stigma of becoming part of the “F” word club.
* No mortgage payments to make…the reality is that it is very rare for a short sale to be successful if you are current.
* Your eligibility to purchase a home will be 2 years instead of 5 years according to the guidelines set by Fannie Mae.
* If you are able to effect a short sale transaction without becoming delinquent, under Fannie Mae guidelines you can purchase immediately.

Negative Elements of Short Sales:

* When you apply for a short sale, the bank will want all of your personal financial information.
* You must be able to justify a hardship.
* Waiting for the response from the bank can be time consuming and frustrating.
* There is no guarantee that the bank will accept your short sale transaction.
* Due to the nature of the short sale, it may take longer for you to have “emotional closure”.
* Derogatory aspects will sty on your credit for up to 7 years.

Understanding the basic concepts of short sales can be empowering.  This does not replace proper legal or tax representation.  Proper representation is imperative, and so important going forward…an empowering event in of itself.