South Run Forest, Springfield, VA short sale specialist of Dan and Traci & Consultants with Keller Williams Realty shares information about a frequently asked question: How Do I Qualify for a Short Sale? In order to be eligible for a short sale, a homeowner must be able to prove to the lender that they are a victim to a “hardship” and are therefore unable to continue making payments on their mortgage. A hardship situation is one that is the result of some mitigating circumstance that forced the borrower into a position where they can no longer afford their mortgage payments. While every situation is unique, some common examples of hardship include:
- Unemployment or loss of primary income source
- Inability to work due to health crisis
- Mounting medical expenses
- Employment relocation
- Failure of business
- Bankruptcy
- Death of spouse or significant other
- Divorce or separation
A short sale occurs when the proceeds of a real estate sale fall short of the mortgage balance owed on the property. To facilitate a short sale, the lender agrees to discount an outstanding loan balance, usually due to an economic or financial hardship on the part of the mortgagor to allow a sale to occur.
Comments(0)