Zillow Advice: Zestimates - will a short sale work on a rental property that is upside down. the renters are behind on payments. http://www.zillow.com/advice-thread/will-a-short-sale-work-on-a-rental-property-that-is-upside-down-the-renters-are-behind-on-payments/320143/ Zillow Advice | Zillow Real Estate Hello, I agree with every ... http://www.zillow.com/advice-thread/will-a-short-sale-work-on-a-rental-property-that-is-upside-down-the-renters-are-behind-on-payments/320143/ Hello,<br/><br/> I agree with every point that Linda made in the previous answer, but would just like to add that you should speak with you accountant prior to attemping a short sale on and investment property.&nbsp; There are serious tax ramifications on short sale for investment properties.&nbsp; You as the owner may be responsible to add the loss of the sale as income on your taxes!!&nbsp; Please consult with and attorney or accountant on this issue.<br/><br/>David Tue, 02 Feb 2010 03:56:00 GMT http://www.zillow.com/advice-thread/will-a-short-sale-work-on-a-rental-property-that-is-upside-down-the-renters-are-behind-on-payments/320143/ 2010-02-02T03:56:00Z To do a short sale, you will ... http://www.zillow.com/advice-thread/will-a-short-sale-work-on-a-rental-property-that-is-upside-down-the-renters-are-behind-on-payments/320143/ To do a short sale, you will have&nbsp;to prove that you are undergoing a financial hardship.&nbsp; If you have been qualified for a <a href="http://www.zillow.com/refinance/">refinancing</a> under the MHA program, it looks like that you are financially qualified to keep the property under the MHA program.&nbsp; However, if you can still prove that even with the MHA program you will not be able to afford the payments and will eventually go into <a href="http://www.zillow.com/homes/for_sale/fore_lt/">foreclosure</a>, then you have a chance.<br/><br/>Talk to a local <a href="http://www.zillow.com/directory/real-estate-agents/">Realtor</a> who is experienced and knowledgeable with the short sale process and he/she will be able to pre-qualify you.<br/><br/>Hope this helps! Sat, 30 Jan 2010 20:26:00 GMT http://www.zillow.com/advice-thread/will-a-short-sale-work-on-a-rental-property-that-is-upside-down-the-renters-are-behind-on-payments/320143/ 2010-01-30T20:26:00Z