Beginning the Process

• Short sales can be complicated negotiations. Engage a real estate agent who has had experience and success in closing short sales versus an agent who is unfamiliar with this process to ensure things go smoothly. The costs to lenders of foreclosure can easily exceed even generous discounts in short sales. Lenders are not in the business of finding buyers and will often make large concessions to avoid having to put a property on their books. An experienced real estate agent can both find a buyer and negotiate with the lender.
  
  

Paperwork

• Before banks will approve a short sale, they assess whether you can continue to make payments under the current mortgage. To prove that you have a hardship justifying approval of a short sale, be prepared to complete detailed paperwork showing your current financial situation.
  
  

Sales Price

• Sales price in a short sale transaction is typically not important to the seller since only the bank will receive proceeds of the sale. The only time when sales price should matter to the seller is when the bank requires a financial contribution for approval of the sale. Keep in mind that bankruptcy in Florida may protect you from foreclosure, due to the Homestead Exemption, which allows bankrupts to retain their houses. This is a major advantage when negotiating with lenders.
  
  

Federal Programs

• Stay informed on the most recent federal programs that offer benefits to sellers in short sales. The latest programs offer incentives for banks to approve short sale offers and may also provide stipends to help sellers cover moving expenses.
  
  

Completing the Sale

• Be diligent in responding to requests from the bank for additional or updated information on your financial situation. Often banks give sellers a very short window of time to complete a sale and any delay in submitting required documentation could ruin your opportunity to complete the short sale.