So you have decided to try a short sale on your home in an attempt to save your self from going through a credit damaging foreclosure, but does your property meet short sale qualifications? Consider the following to determine eligible for a short sale.
If you are can not answer yes to all four requirements, you may not qualify for a short sale.
With the housing markets in decline (which is leads to many short sales and foreclosures) this is very common. However comparable sales figures must substantiate that the properties value is in fact worth less than the unpaid balance left on the mortgage.
There was a time when lenders or banks would not consider approving a short sale if the the payments were current. Luckily the lenders and banks have realized it is better to try and prevent foreclosures and that several other factors can push a homeowner to default on their loans.
No one is immune to unexpected hard times, try as we might sometimes the worse can happen, and we are forced to adjust our living situations to compensate. In Short Sale Real Estate a seller must submit a "Letter of Hardship" which explains why the seller is unable to pay the difference due. this letter of hardship must also include why the seller has stopped or will stop making their monthly mortgage payments.
- Death
- Divorce
- Job Loss / Unemployment / Lowered Income
- A sudden Illness or medical emergency
- Filing for Bankruptcy
as you can see valid hardships are very real situations that can be both un-predictable as well as financially damaging.
so what does not qualify as an acceptable hardship?- A want to escape the neighbors.
Has every home in your neighborhood recently been converted to produce and house illegal narcotics? Sorry that does not qualify as a short sale hardship. - Buyers Remorse / Poor financial decisions
Did you go through a months wages to out fit your living room with the latest in home theater accessories? Perhaps you've spent to much time partaking in and purchasing some of your neighbors new "product". This falls under a lack of personal responsibility and does not qualify you for a real estate short sale. - Growing Family
Sorry but having additional children, thus the need for a larger house is not a Short Sale qualifier. - You Just want to move.
The will to move because either you feel your home no longer suites you, or you think you'd prefer an apartment is more of a lifestyle decision and has no bearing on whether or not you meet the qualifications of a real estate short sale.
Upon reviewing the sellers financial statements and/or tax returns if your bank or lender discovers any assets (other owned real estate or properties, stocks, bonds, etc.) the lender may refuse the short sale assuming that you still have options to pay them the full amount due.
Still not sure if you qualify? Don't give up hope the 1st Choice title services short sale department is here to assist you!
