Put house up for Short Sale

[flhomeowner]

I wasn't going to do this, but I have a realtor now and within 2 days of the listing, someone offered cash for my house. The offer is with the mortgage company and they say it could take up to 9 weeks to approve/disaprove renegotiate the amount and so on. Since it is a short sale, if there is extra money owed am I going to have a judgment on my credit report, or will they wipe out the rest of the loan? As I said a few weeks ago, my sub prime mortgage was with New Century Mort. who went bankrupt, and Carrington Mortgage Company in CA took over the mortgage at the end of June.

Thanks again for all of your help. It is reassuring to know others
are going through this too, although it is a sad time as I thought I would always stay in my home. Too bad the hurricanes made the insurance unaffordable!!

Any help would be appreciated with anything anyone knows about short sales, and if you already have done a short sale what is the process you went through during this time.

Gwen in Florida

[HHM]

If the mortgage company "accepts" the short sale, then you will NOT be liable for the difference. As far as the real estate transaction, itself, goes...doing a short sale is no different than any other type of sale. The real challenge, and time consuming process is getting the lender to approve the short sale.

However, you will get a 1099 and be expected to pay income tax on that difference. (unless you qualify as insolvent under IRS guidelines).

Good luck, I hope it works out for you.