1. I owe more then more home is worth. I can't make the payment, do I need to qualify for a short sale?

Most banks will want verification of hardship and somehow want you to qualify.

2. I want to do a short sale and have a 2nd mortgage, does this make me ineligible?

No. Both lenders will need to be satisfied in some way to compete the short sale.

3. Do I have to miss a payment to do a short sale?

This depends on your type of loan, FHA says yes, at least 30 days late. Conventional loans will vary depending on the bank.

4. Do I have to pay income taxes...I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me, the seller?

It WAS true, now it is not. Please consult your Tax Attorney or Qualified CPA. In December of 2007 new legislation was passed and the tax laws modified and *MOST people who do a short sale will have no taxes due.

5. I have no money, how do you, the listing agent get paid, who pays commissions?

The bank will pay the commission along with some other usual closing costs.

6. How long does a short sale take, I have missed several payments, is there time to do a short sale?

In most cases yes, please contact us as soon as possible. The foreclosure process is different in each state. In Colorado there are new foreclosure laws which shorten the "redemption" period.

7. I want to preserve my credit score, is a short sale right for me?

In most cases the homeowner has already missed payments, damaging their credit. 

8. If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?

The mortgage insurance is not there for your protection, just the mortage lender's.

This covers just some of your questions, please call with any other questions.