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Do You Qualify For A Short Sale?

By
Real Estate Agent with RE/MAX Realty 100

If you need to sell your house and owe more than what the house is worth, you may consider a short sale. However, lenders do not sanction all short sale requests. You'll have to find out if you qualified for a short sale before you put your house on the market for sale.

What are the qualifications for a short sale?

I. Home Value is Less Than The Amount Owed

The comparable sales must substantiate that the home value is less than the amount owe to the lender.

II. Seller Has Fallen On Hard Time

A hardship letter explaining the financial difficulty to the lender is required in the short sale package.

Examples of hardship are:

1. Illness / medical emergency
2. Unemployment or lost of partial income
3. Divorce
4. Death
5. Bankruptcy

III. Seller Has No Assets To Pay For The Shorted Difference

Lender will ask for bank statements and / or tax returns to make sure that you do not have other assets to pay for the shorted difference.

If you have any question on short sale or need to sale your house via short sale, please contact me.

Comments (1)

Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Caroline;

A Home owner should always seek legal counsel before attempting to pursue a short sale.

Mar 07, 2010 11:21 AM