How To Qualify For A Short Sale

How To Qualify For A Short Sale

What is a Short Sale? A short sale can potentially occur when a homeowner finds themselves in a situation of being upside down in their mortgage. What this means is, the current market value of the property is much less than the present mortgage value on the home.  The Lender then agrees to accept less than the mortgage amount by the current homeowner from the sale of the property.   How Do I know if I Qualify for a Short Sale? Qualifying for a short sale today is no easy task unfortunately. There are many variables going into the short sale process. Before getting into all of those, there are 4 vital questions and qualifications one must ask themselves before moving forward with a short sale.   1. Has your home value depreciated since it was purchased? If you’re unsure about this, the easiest way is to contact your local realtor and have him/her pull up comparable SOLD homes in your neighborhood or surrounding area for a precise market evaluation. If you don’t know a trusted or certified short sale agent, we work with the top producing agents nationwide. Simply fill out the form to the right and one of our agents will provide you with a fair market value analysis of your home.   2. Your mortgage must be in or near default There have been cases in the past when the bank will accept a short sale if the loan is not in default, however times have changed and it’s become a rarity that they will do such a thing. Nowadays in the majority of cases, you must have missed mortgage payments, and received a Notice of Default from your lender.   3. Have You Fallen on Hard Times? This step can be the trickiest of all. A hardship letter must be written up and submitted to the bank proving you have fallen on rough times financially. This letter must address why you will no longer be able to continue to make payments. The hardship letter must include detailed financial information in regards to your inability to pay the difference as well.   Some Examples of Hardships May Include: Divorce Unemployment Medical Emergency Bankruptcy Death   4. You Must Have No Assets Having no assets that can be used to pay off the remaining balance is the last big step that needs to be addressed in the...

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