Are you or one of your loved ones having trouble making your mortgage payments?
When your house is becoming a burden, many homeowners are considering a short sale to move the property. A Short Sale is a situation where the homeowners cannot sell the property for enough money to pay off the existing loans. The homeowner must negotiate with their lender to take less than what is owed.
The following are some criteria which lenders use to determine if a borrower qualifies for a short sale:
1. Bad Health has befallen the borrower or an immediate family member and has crippled their personal finances.
2. Death of a spouse has caused the borrower's income to drop.
3. Divorce has caused the borrower's income to drop.
4. The borrower has been called to active duty in the millitary and cannot pay their mortgage.
5. The borrower's employer has transferred him out of the area and he is unable to sell or rent the property.
6. The borrower suffered a disabling injury and he cannot work.
7. The borrower is unemployed and cannot find a job.
8. The borrower is financially insolvent and cannot pay the mortgage.
The borrower must be able to document hardship. Some items that the lender may request is a personal financial statement, bank statements, tax returns and pay stubs.
There are many possible consequences associated with doing a short sale and the homeowners should not attempt it without first consulting their attorney and tax preparer. Homeowners should also hire a Realtor who is experienced with short sales. I am a certified distressed property expert (CDPE) and have had training through the National Association of Realtors for Short Sale and Foreclosure Resource (SFR.)In the Du Page County area where I work, I have sucessfully completed short sales.
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