Will The Bank Come After Us For The Difference?
Most banks will not, although sometimes a promissory note is requested and negotiated. A lender usually releases liability of the mortgagee in writing.
Why Do I Have To Provide Personal Information?
All lenders require a complete short sale package, including tax returns, bank statements, pay stubs, etc. to show that there is a genuine hardship.
I Heard The IRS Will 1099 Me For The Amount of Debt Forgiven.
Technically, they can, however, it is very rarely done. This is because most mortgage loans are considered non recourse, which means that the loan is secured by the property, not by you personally. A new Illinois law that was passed in December 2007 does not permit lenders to issue 1099 to a borrower for a deficiency balance.
Will A Short Sale Destroy My Credit?
Yes and No. The short sale may not show up on your credit. In fact, most mortgage trade lines report "Mortgage Paid" after a short sale. Any late payment history will still appear, as will any Notice of Default filings. What won't report is an actual foreclosure. In today's credit market, a foreclosure may prevent you from obtaining a mortgage for at least 5 years, longer than a bankruptcy.
How Long Will This Take?
This is totally up to the lender. Some lenders take as little as two weeks, some over six months. The only way to know is to start the process.
Why Should I Accept Such A Low Offer On My Property?
Due to varying market and financial conditions, it is sometimes necessary to accept a lower offer to consummate the sale. The right price can save time, unnecessary anxieties, and avoid further financial hardship.
Do I Have To Pay A Realtor or Attorney?
Only if you have hired one. With other parties involved, we will work with them for the best outcome of ultimately short selling the property. ICG will do the short sale paperwork and negotiate with the lender. A realtor will list and sell the property. An attorney will conduct the real estate transaction.
Will This Cost Me Anything?
No. ICG does not charge for the filing of a short sale.
Will I Get Any Money From The Sale?
Not usually. Most lenders will not allow a borrower to receive any money. The lender is taking a loss; therefore if they believe the borrower is benefiting monetarily from the sale, they will immediately decline the short sale.

*Investors Capital Group is not an attorney and does not give legal or accounting advice.