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Yes. Every penny that is earned and expensed must be accounted for.
The purpose of the financials is to show the homeowners hardships. By showing their financial status, which should focus on their debt and not so much on their assets, the lenders who they owe money to can determine what their odds of getting paid back might be. So when you are preparing financials for short sales, show as much debt and supportive financial hardships. Recent or pending divorce documents are good docs to put behind the statement as is medical debt.
GooD Luck! :beer