If you are a short seller, you must be undergoing hardship not of your own making. such as illness, unemployment or natural disaster.
I know of no exceptions to the policy of almost every bank and mortgage lender to require proof of financial hardship before allowing a residential short sale, and entirely forgiving the borrowers debt.
They would allow you to sell and pay the difference between the debt and the net in cash at the close of escrow.
If you are not in hardship but don't have cash assets, a bank might allow you to transfer the unpaid portion to a personal loan, or a loan secured by other assets.
An investor or homeowner who made an unlucky investment, can't expect relief from a short sale
The article linked below tells you a little about the patience and risk tolerance required from a buyer and a seller in a short sale situation. My opinion of short sales for buyers? High Risk, Low Reward.
To sum up the article. 1. Buyer waits a long time for the bank to anything. 2. Buyer has to sign banks counteroffer that is full of anti-consumer clauses. 3. Buyer has to pay nearly full market value. (discount, if any is much tinier than you think it will be) 4. Bank can cancel the sale at any time up until close of escrow, with no consequence to the bank and no compensation to the buyer
In my not so humble opinion ( imnsho,) ) The reasons why the failure is above 80% are:
1. Many sellers don't qualify, they think that being upside down and hating it is enough.
You must also be undergoing hardship not of your own making. such as illness, unemployment or natural disaster. Stovall gives a few other reasons.
2. Prospective buyers think that these are bargains, so very few buyers offer close to full market value. The banks will not approve sales at huge discounts, tiny discounts: yes.
3. The wait, 4. the paperwork, the wait 5. the anti-buyer addenda, the long wait 6. the uncertainty of the sale, still waiting 7. the perception, if not a reality, of bad faith dealing by the bank loss mitigation managers.
.I linked below to an article in Broker Agent News by Steve Stovall. He gives a pretty good description of the short sale process, seller, property, paperwork, and buyer requirements
If you look through what I've written I'm not a huge fan of short sales, at least from a buyers' perspective. This is mostly because you need a concurrence of factors - a perfect storm, put another way - for the sale to be completed. There are some things that can help speed a process that often takes months, but even then there are no guarantees.
I say this as prelude because I would like to talk to you a little more about your situation, just to see if a short sale is a realistic possibility. Not all scenarios lend themselves to a short sale. You're welcome to contact me off list. Or you can contact Dave or Keith below - either also would be an excellent choice.
Best of luck to you.
Please read my blog on foreclosures and short sales.
Contact a local Realtor regarding a referral for short sales. If after reading my blog you can post more questions if you llike.
The key to a successful short sale is to be able to demonstrate hardship. I do not know your market specifically, however overall lenders are swamped with shortsale requests. Having a frank dialogue with you lending as early as possible it key. However, one problem is that some lenders will not even talk with you untli after you are late on payment. After being late one payment, due to shifting markets you may find yourself in a foreclosure situation rather quickly.
Time is of the essence.