In case you are thinking of trying to do a short sale, please take the following into consideration before you continue:
Should you actually be successful in having your lenders accept you SHORTING your sell, know that you will need to wait 2 to 3 years after the short sale date before you could obtain another aconventional mortgage.
If you think you would need a FHA mortgage--- then these are the rules that apply prior to you being acceptable to the Feds. You must have been current on all bills at the time of the sale and your lender accepted the short sale as payment in full then you could buy a home right away. Â BUT, if you were late on the existing mortgage then it would be 3 years from the date of the short sale before you could apply to FHA again and be successful.
If you can handle all this....and you still want to do a Short Sale, please work with an attorney who specializes in Short Sales. That person will tell you all the paperwork that must be gathered, and that person will submit them to your lenders. Such a specialist will work with you for a FLAT FEE.
The attorney will determine WITH YOU just how much you owe.
YourÂ real estate agent will help you determine what the house should be priced at, and get you a buyer. The funds generated might not be enough to pay for what the bank will accept. Be prepared to come to the closing with money. You haven't been paying the mortgage for a long time, so I hope you have been saving some of that money to pay the commission.