A short sale is a better option than bankruptcy or foreclosure but it can definitely cost you money and damage your credit history.  Provided that you meet the lender’s requirements and you have a qualified buyer, then you can choose to go with a short sale.  You need to search for a buyer who has interest in dealing with extended deadlines and additional demands by the lender to purchase your home.

The buyer needs to be confident with your house so get a credible and reliable lender to help you with a successful short sale transaction.  If done right, the short sale could be the best decision for all including the lender because of the lower costs compared to foreclosing.   In a short sale, you have to provide the necessary documents like full financial disclosure, balance sheet of income and expenses, bank and asset statements, tax returns, purchase contract and proof of income to get a short sale.

But do not rely on a short sale if you cannot prove your hardship in paying the mortgage, you are bankrupt or have a lien in a third party.  You could also lose a good opportunity with a short sale if the transaction lasted for several months. To help you make the right decision, get the help of a professional like a real estate agent, legal and tax counsel.  You can also ask friends, family and co-workers for referrals who have worked with an agent experienced in short sales.