3 Must Have Qualifications for a Short Sale Homeowner

3 Must Have Qualifications for a Short Sale Homeowner

While the misconceptions of what qualifies a seller for a short sale are many, the reality is actually very simple. Following is an explanation of the three major items that most lenders are looking for to see if you will qualify.

 

While a short sale is an involved process, this is an excellent place to begin.

 

 

1. FINANCIAL HARDSHIP

First and foremost a lender will want to see that you have a ‘financial hardship’. A financial hardship is a verifiable issue that has or will cause you to miss payments or have financial difficulties. 

 

 

2. MONTHLY SHORTFALL

Almost every lender will want to see that you cannot afford to pay your current mortgage. The way that this is demonstrated is on a financial worksheet that your agent will provide. This is essentially a monthly profit and loss statement. While this may sound difficult in reality determining whether you have monthly shortfall or not is actually relatively easy. 

  

 

3. INSOLVENCY

In order to qualify for a short sale, you must not have the means to pay down your mortgage. This means that the mortgage company wants to see that you owe more than you have in cash (known as being insolvent). 

 

 

In order to go through these issues it is recommended that you sit down with your agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one. 

 

Take action and make an appointment with us today and get yourself started on the path to financial recovery.   

 

Our team has specialized training on helping homeowners who may be facing foreclosure. Please call us today for a no cost confidential consultation. We can be reached at (707) 441-1765.

 

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 CA Department of Real Estate #01313330