SHORT SALES
A short sale is an agreement made with the mortgage company in which the property is sold for less than what you owe on the property. The obligor/owners put the real estate on the market with a qualified real estate agent; the agent will sell the property for what it is worth. The bank can agree to a few options for the difference: issue an IRS 1099, which means that the obligor will pay just the tax on the difference; require the obligor to sign a promissory note for the difference; or have the obligor pay the difference at closing.