There is no such thing as a free lunch. 

This is not some dream come true alternative to foreclosure where the money you owe magically disappears. 

The deficiency will be accounted for in 1 of 2 ways.

#1 The deficiency can be 100% loaned to the seller in the form of a promissory note, which then must be repaid.
#2 The deficiency can be "written off".

If any portion of the deficiency is "written off", meaning the bank assumes the loss, you can be sure they will report it as 1099 taxable income to the seller or even get a judgment against you which will show on your credit for 10 years (not 7 years, 10 years). 

It is a cumbersome process.  If you are entering into a short sale as a buyer or seller, don't expect it go to as quickly as any other sale.  There is a log of "back and forth" negotiating.  We have seen short sales approved in 45-60 days or it could be 6 to 9 months!

The employees of the lender that are negotiation the sale ARE NOT there for the benefit of the seller.  Their only goal is to collect as much money as possible for the lender and they will use whatever tactic necessary.  You can be sure they will misrepresent their own policies and flat out LIE in order to intimidate and scare you into paying more money or signing a promissory note.  Many of the managers of the lender's collection departments are paid on COMMISSION depending on the amount they collect.

See the tab "Short Sale Agreements" for the most common ways the lender will "write off" the deficiency.

WE CAN HELP YOU!
CALL
303-429-1887
OR FILL OUT THE FORM BELOW
(A Short Sale Specialist will contact you within 24 hours)
TO GET THE HELP YOU NEED