Short Sales – What Sellers should know

Read what you sign.  The Short Sale Addendum (one of the forms that gets to be included in any contract that is a short sale) covers the seller if the bank should come back with an acceptance of short sale conditional on the balance being paid off.

Some times in a short sale the bank will want the seller to pay the difference the bank is being shorted. 

When a seller applies for a short sale with the bank they have to fill out a package similar to a loan package.  With all of the financial data; that means your 401K could look mighty nice to the bank. 

The Short Sale Addendum in Arizona allows for all parties to be satisfied with the final conditions.  If the bank agrees to the sale and the seller once they have the final agreement letter does not like the terms there is no contract.

Be sure to read these other posts as well:
Short Sales, info for the Buyer
Mortgage Forgiveness Debt Relief Act of 2007