Who qualifies for a Short Sale?

By
Real Estate Agent with Keller Williams

Who qualifies for a short saleWho qualifies for a short sale? In order to qualify for a short sale, you must first have a hardship.  A hardship can be a multitude of things.

  1. Job Relocations.  If you are employed and your employer has that you can better help the company by working in Hawaii, South Dakota, Texas, or anywhere other than where you currently reside, you can qualify for a short sale.
  2. Job loss or income reduction.  If you suddenly find yourself without a job, or maybe had to take less hours or a pay cut, this can qualify you for a short sale.
  3. Health concerns.  If you live in an area and find that the new factory that was built a few miles down the road is polluting the air in such a way that it is effecting your health.  Or if someone else starts to trigger a health problem for you and it can be tied to your house or location, this can qualify someone for a short sale.
  4. Neighborhood isn't what it used to be.  Sometimes neighborhoods don't turn out the way we expected them to.  If crime rates have rised, drugs have become an issue in the neighborhood, or for any other reason you simply do not feel that the area is safe any longer for you or your family, this can qualify you for a short sale.
  5. Divorce.  Divorce is another way to qualify for a short sale because it effectively means that half the income of the house hold is now gone.
  6. Other Reasons such as Death, Bankruptcy, and others are considered hardships and can cause someone to qualify for a short sale.

Now short sales are on a per client basis, their circumstances, financial situation, and judged by the bank institution that the mortgage is held with.  To better know if you are qualified for a short sale, contact a local real estate professional and explain your situation to them.  To be sure you are getting all the right information you may also want to consult with an attorney.

Posted by

Living and Loving South Mountain and Laveen

Comments (3)

Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Good post.  However, there are extenuating circumstances with some lending institutions that you haven't mentioned.  But, on the whole, this is great consumer information.  And, better a short sale than a foreclosure. 

Sep 15, 2010 11:38 AM
Pat, Ben and Martin Mullikin
M3 Realty - Brookfield, WI

Great clarification on some points that confuse many people. Thanks!

Sep 15, 2010 12:14 PM
Carlie Back
Keller Williams - Laveen, AZ

Thank you Don and Pat.  I added a little more info on how it is lender specific.

Sep 16, 2010 08:40 AM