when setting an asking price make sure to factor the cost of selling the property into the total amount of money you need to get out of the sale of course you want to sell the home for as close to the value of your mortgage as possible but in a down market there is bound to be a shortfall 
in some states even after a short sale the bank will expect you to pay back all or part of that shortfall gather all the documents you ll need to prove your financial hardship to the lender these may include bank statements medical bills pay stubs a termination notice from your former job or a divorce decree it is up to you to come up with a proposal be aware that the lender ultimately must approve a short sale after receiving all the details because the lender is the recipient of the proceeds your job is to find a buyer for your home 4once you have a buyer and the necessary paperwork you are ready to submit the buyer s offer and your proposal to the bank along with the documentation of your distressed financial status your proposal should include a hardship letter explaining the circumstances that are preventing you from making your mortgage payments you want to make it as convincing as possible and protect your interests while also appealing to the bank be careful about submitting your financial information to a lender if it does not approve the short sale it may use your financial information to try to get money out of you in foreclosure proceedings if you still have cash assets you may be expected to use them to continue making mortgage payments or to make up the shortfall between the sale price and the mortgage amount an attorney experienced in completing short sales can help you navigate the details short sales can take longer than regular home sales due to the need for lender approval they often fall through too the buyer may find another property while you re waiting on an answer from the lender be prepared for this possibility if the short sale transaction goes through consult with the internal revenue service irs to see if you will have to pay taxes on the shortfall 