How to Qualify for a Pinellas County Short Sale

Current housing market conditions are certainly not as good as most people would hope they would be. In fact, in the last couple of years, the number of homes entering some stage of foreclosure has increased considerably. A lot of distressed homeowners who prefer not to go through a foreclosure consider other options such as a loan modification, deed in lieu of foreclosure and the popular Pinellas County short sale.

But, before you heave a sigh of relief, you should first determine if you are qualified for a Pinellas County short sale. There are actually four basic requirements:

1. Home Value Has Dropped – You can establish this by doing a comparable sales study of similar homes in your neighborhood. If you find the amount you owe in mortgage is larger than the value of your home, then you are underwater
2. Homeowner is Near or In Default – Before, lenders would not even look at a short sale proposal if the mortgage payments are current. But with foreclosure costing them more in the long run, a lot of lenders have become more accommodating and receptive.
3. Homeowner is Experiencing Financial Hardship – You will be required to submit a hardship letter detailing why you are no longer able to pay your mortgage dues as well as pay the balance or difference after the short sale has been concluded. Keep in mind there are certain things which will not be considered a hardship such as:
· Poor financial decisions like buying expensive items
· You are not on friendly terms with your neighbor
· You are planning on buying a new home because the present home no longer meets your family’s needs and requirements.
· Pregnancy – expecting a new member in the family does not constitute a hardship

On the other hand, unemployment, bankruptcy, death, serious medical condition and divorce are acceptable hardship cause.
4. Homeowner Has No Assets – A lender will have to make sure you have no existing assets such as cash, other properties, bonds and stocks. You will have to provide supporting documents in order to meet this requirement.

Keep in mind you are not considering a Pinellas County short sale to profit. You should only look at this option if you want to avoid home repossession and still have a relatively good credit score to fall back on.