If you are wondering what a short sale is and whether you qualify, you need to speak to a good REALTOR who has experience with short sales.
In short--a short sale is when your mortgage company approves a sale and accepts an amount less than what you owe them on your mortgage. If you are having difficulty keeping up with your payments, in most cases, a short sale is better than bankruptcy or foreclosure.
I just got a short sale approved last week, after many offers and negotiations, but expect to close in two weeks. In this case, the mortgage company has agreed to charge-off the difference of $50,000.
I do an indepth interview with homeowners and ask certain questions to determine whether there is a hardship. The mortgage company wants to know what circumstances, mostly financial, have changed since you first applied for the mortgage. In some cases they ask for a deficiency judgment and in other they will charge off the difference.
Other questions:
What is your current income;
What are your current expenses;
Is there a second mortgage on the property; in addition to other questions.
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