Contact your lender as soon as you recognize you will have a problem paying your mortgage
Continue to pay your mortgage as long as you can; even partial payments are better than no payment at all
Make sure you and your listing agent have all the necessary documentation – including a hardship letter, financial documents, authorization from the bank and an exclusive right-to-sell agreement
Be very specific and clear in your hardship letter, explaining with numbers why you need a short sale
Work with a Realtor who can do an accurate market analysis and price your home according to its true market value
Work with a Realtor and an attorney who can make sure that the title transfer and release of liens is handled appropriately
Make sure you understand everything you sign; particularly important is understanding your future obligations (if any) toward the unpaid debt
Consult a tax attorney to be sure you understand the tax obligations of a short sale
[Source: WashingtonTimes.com "Big benefit in short sale for seller, buyer" July 31, 2009]
