Short sale on primary with owning rental property

[lostincome]

Hi,

I'm wondering if anyone has had experience with trying to negotiate a short sale when there are other rental properties owned (with mortgages).

I couldn't find any similar posts so I figured I'd ask. My situation is that I am about to submit the paperwork for my short sale on my primary residence, which I own alone, wife is not on mortgages. I can no longer afford it due to my income being cut and my wife's income being zero now.

I own a rental property, the wife owns 3. They all have mortgages on them and realistically they would about break even if I had to sell, but some are more underwater than others. The short sale firm I am using wants me to submit our 2011 taxes to the bank, which shows all of the rentals as we file jointly. I'm worried they will see all of these "assets" that my wife owns and not play ball, and that step cannot be undone.

Any input is uber, and id love to even know if somebody got a short sale done without submitting their taxes. This site is one of a kind, I love it. Thanks!

[azmo12]

I would be very careful. Is your loan recourse? I tried to shortsale a rental and submitted my tax reurn . They never accepted the shortsale and then sued me. I had quit paying the second. Everybody's situation is different, but showing your cards is not good in my book. You could try to submit your 2 page 1040 and no schedule Es.