Do I qualify for a Short Sale?
In order for the current lender to accept a short sale
the borrower must have a proven financial hardship. This will have to be shown through a signed letter that will be submitted to the existing mortgage company along with additional documentation.
the borrower must have a proven financial hardship. This will have to be shown through a signed letter that will be submitted to the existing mortgage company along with additional documentation.A hardship can be defined as:
A material change in the financial situation of a homeowner that is or will affect their ability to pay their mortgage.
For example:
- Loss of job
- Business failure
- Damage to property
- Death of a spouse
- Death of family members
- Sever Illness
- Inheritance
- Divorce
- Mandatory job relocation
- Medical bills
- Military service
- Payment increase or mortgage adjustment
- Insurance or tax increase
- reduced income
- separation
- Too much debt
- Incarceration
A short sale home owner must be financially insolvent. He has to owe more than he has or does not have cash that could be used to buy down the mortgage. If the homeowner does have cash or assets, they will be expected to use them to pay down the mortgage. A short sale is not a way to just get out of a mortgage. It is a tool for a borrower to use when they truly can't pay their payments.
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